Health Benefits News & Events

FAQs: 2025 Blue Shield of California Health Contract Negotiations

This article was updated June 30, 2025, to reflect negotiations. 

Blue Shield of California and the University of California (UC) Health System have agreed to extend their contract negotiations through August 9, 2025.  The new deadline means all Blue Shield of California members can continue to access UC Health as an in-network provider through August 9.

If a new agreement is not reached by then, Basic members may have to pay out-of-network costs — or need to pay for the entire cost of care — for services at UC Health starting on August 10.

What is the status of the negotiations between Blue Shield of California and UC Health System?

Both Blue Shield and UC Health System have expressed a strong interest in negotiating a new contract prior to August 9, 2025, and are currently engaged in active negotiations. Contract discussions are a standard part of the health care industry.

While the negotiations are ongoing, we want to make you aware of which plans would be impacted and what CalPERS members can expect.

Who would be affected by a UC Health System contract termination?

If there’s a contract termination, it would affect CalPERS members who are insured by select Blue Shield of California plans and who receive their care through the UC Health System.

Specifically, this would impact Blue Shield of California members who are enrolled in:

  • PERS Platinum PPO
  • PERS Gold PPO
  • Access+ HMO and EPO
  • Trio HMO

Would Medicare members be impacted by this potential termination?

There would be no impact to CalPERS members enrolled in the PERS Gold and PERS Platinum Medicare Supplement plans. Members enrolled in Blue Shield’s Medicare PPO plan will receive letters informing them of the potential contract termination. However, these members may continue to see any provider, hospital, or medical facility that accepts Medicare.

Which hospitals would be impacted?

The UC Health System includes UC Davis, UCLA, UC San Diego, UC San Francisco, UC Irvine, and UC Riverside hospitals as well as affiliated children’s hospitals, facilities, and medical groups.

Where can members find what facilities and providers are in-network?

The Find-a-Doctor tool will continue to include the UC Health System up through the contract termination date. However, panels have been closed to prevent members from selecting a new UC Health primary care physician (PCP). Members can use the Find-a-Doctor tool to select an in-network PCP or call the customer service number on the back of their member ID card.

How will CalPERS members be updated on the contract negotiations?

To proactively inform members about this potential termination, Blue Shield is issuing a series of communications tailored to the specific plan in which you are enrolled.

Access+ and Trio HMO Plans and EPO

  • On May 1, 2025, Blue Shield mailed letters to potentially impacted HMO members, informing them of the possibility of contract terminations.
  • A follow-up notice dated May 30, 2025, advised members of the initial termination date of July 1, 2025.
  • Blue Shield issued an amended termination notice dated June 25, 2025, notifying members of the extended termination date of July 10, 2025.
  • Blue Shield and the UC Health System agreed to a 30-day extension agreement through August 9, 2024.

In addition, both Blue Shield and UC Health are providing updates on their websites. Members can also contact customer service for either Blue Shield or UC Health to get the latest information. CalPERS will continue updating this article for members.

PERS Gold and PERS Platinum PPO Plans

PPO members who are currently assigned to a UC Health System PCP, or who have received care from a UC Health provider or hospital, will receive a termination notice seven days prior to the August 9, 2025, termination date. These letters will include guidance on how to find a new PCP, specialist, or hospital provider. Additionally, the letter will include instructions on how to request continuity of care.

CalPERS remains committed to ensuring members receive timely updates on contract negotiations.

Will I receive a new ID card?

Access+ and Trio HMO Plans and EPO

HMO members will be automatically assigned to a new PCP and will be issued a new ID card. In the event you wish to change your reassigned PCP, please contact HMO customer services at 1-800-334-5847.

PERS Gold and PERS Platinum PPO Plans

Blue Shield will issue new member ID cards only to those who actively select a new matched PCP.

All PERS Gold and PERS Platinum PPO plan members are matched with a preferred PCP, and this provider’s name appears on their Blue Shield member ID card. If your current PCP is part of the UC Health System, please note that after August 9, 2025, UC Health providers will be considered out-of-network. As a result, members with a UC Health PCP will not receive a new ID card unless they choose a new in-network provider.

To receive a new ID card with an updated, in-network matched PCP, please use the Included Health Provider Match Tool by following these steps:

  1. Log in to Included Health at includedhealth.com/calpers or use the mobile app to search for a provider that meets your needs.
  2. Review your matched provider options.
  3. If you choose a new PCP, log in to the Blue Shield member website to update your preferred provider. You can find the link in the “Insurance Info” section of the Included Health website or app.

Would this impact Blue Shield members who are being treated for ongoing or long-term conditions?

By state and federal law, health contracts must provide for continuity of care. This means members with certain specific conditions — such as those who are pregnant or with a newborn, individuals with chronic conditions, significant mental health issues, and those undergoing treatment for a potentially terminal illness — will continue to be able to see their current providers in-network for the time specified by the continuity of care provisions.

For a full list of covered conditions contact customer service:

Would a termination be considered a qualifying event, allowing CalPERS members to change health plans?

No, contract terminations are not considered a qualifying event to change health plans. Members would not be able to change health plans because of a termination. They would be eligible to change their coverage during our regularly scheduled Open Enrollment period from September 15 through October 10, with coverage effective January 1, 2026.

What is CalPERS’ policy on health provider disruptions?

The CalPERS policy on potential provider disruptions (PDF) allows the parties to continue negotiations and work toward resolution, without favoring one side over the other by intervening. CalPERS believes strongly that it is inappropriate for providers and health plans to involve members in contract disputes and has communicated that position during these negotiations.

Did members receive a communication dated 06/01 in error?

On May 1, 2025, Blue Shield mailed letters to potentially impacted HMO members, informing them of the possibility of contract terminations. A follow-up notice dated May 30, 2025, advised members of the initial termination date of July 1, 2025. Subsequently, Blue Shield issued an amended termination notice dated June 25, 2025, notifying members of the extended termination date of July 10, 2025.

Subsequently, Blue Shield issued an amended termination notice dated June 25, 2025, notifying members of the extended termination date of July 10, 2025. Blue Shield will send out new letters, informing members of the extension to August 9, 2025.