Committed to their not-for-profit mission, Blue Shield of California fulfills their pledge to limit net income to 2 percent of revenue. In any year that Blue Shield earns more than 2%, they return the difference to customers and the community.
Bruce Bodaken, Blue Shield’s Chairman and CEO, announced that they will be returning $50 million to customers by December 31, 2012. The funds will be returned in the form of dues / premium credits to customers. Individual plan and fully insured group customers will each get a 9% credit on one month’s dues / premium. Customers with continuous fully insured coverage in the same eligible product from August 1 – December 31, 2012 will receive a credit in the bill for their December 2012 dues / premium.
Blue Shield has returned more than $470 million to customers to date. This year’s pledge amount brings the total pledge-related givebacks to $520 million. This year, Blue Shield came closer to hitting its 2 percent target by adjusting rates to make care more affordable. Thank you Blue Shield.