Blue Shield

California taxpayers dodged a bullet yesterday with the passage of a high-stakes bill to help fund Medi-Cal.

Legislative Democrats and nearly a dozen Republicans approved a plan to trade existing taxes for a new tax on insurers to raise more than $1 billion in needed health care funding and preserve federal Medi-Cal matching funds.

If you reneged on a multi-million dollar promise to the state, the full weight of government would come crashing down on your head. But that's not what happening to Blue Shield.  

If you believe state HMO regulators, they extracted some big concessions from Blue Shield this week in order to gain the Department of Managed Health Care’s approval to spend $1.2 billion it has stockpiled from customers after years of excessive rate increases. DMHC gave Blue Shield the go-ahead to buy Care 1st, a Medi-Cal health plan.