Is Blue Shield and Blue Cross the Same?

Blue Shield of California is not the same as Anthem Blue Cross. In fact, their Medicare Supplement (aka “medigap”) products compete directly against one another.

By most estimates, Blue Shield of California is the market share leader for the number of medigap (medicare supplement) insurance policies issued in California.  Approximately two years ago, Blue Shield dethroned United Healthcare as #1, although United Healthcare continues to dominate across all 50 states.   An impressive accomplishment, given Blue Shield’s not-for-profit ownership status.

Further down the marketshare list is Anthem Blue Cross, who recently rebranded as Elevance Health.  Not-for-Profit Blue Shield of California has many things going for it, including…

• Blue Shield’s unique 2% Pledge, which limits their net income to 2% of revenue. Any earnings beyond this limit are returned to customers or invested in the community.
• Northern California location (Oakland, CA).
• Blue Shield of California offers both regular Plan G medigap and Plan G Extra (Innovative
  

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  class) medigap product choices for consumers.

Blue Shield of California’s rates are competitive, see both insurance company’s pricing and compare for yourself:

• Blue Shield of California
• Anthem (now known as Elevance Health)
• Recent Article on Returning to Original Medicare

Blue Shield of California’s Leadership

While Blue Shield may enjoy a Number 1 ranking of medigap policies issued in California, no discussion is complete with mentioning a close rival, United Healthcare.  Where Blue Shield boasts not-for-profit ownership status, United Healthcare boasts a branding relationship with the largest senior advocacy organization in the United States.

Further, United Healthcare’s medigap products include the Community Rating method, in contrast to Blue Shield’s Attained Age method. As far as we can tell, no other individual medigap insurer in California prices their supplemental medigap policies based on a community rate.

How does community rating work?  This is a great question and another good question is “do some medigap insurance policies cover more doctors than others” e.g. Stanford, Sutter, Palo Alto Medical Foundation?  These issues are best discussed with a local independent agent who is contracted with Blue Shield of California, Anthem (Elevance), and United Healthcare.  Book a short consult with a licensed sales agent and save a lot of research time:  There is no obligation to buy.

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You should never overpay for medigap insurance, instead, get expert advice before you enroll.  Learn the latest on Medicare access to Stanford, Sutter-PAMF etc.  In California, there’s no extra cost when you use a local, independent agent  and, the best news is the agent is compensated by the insurance company (not you)!   First, Learn About Us

Blue Shield of California Talking Points

• In Blue Shield of California’s words, “We’re driven by our mission — not by meeting shareholder expectations. That’s why we cap our net income at 2% of revenue and return anything above that to our customers and the communities we serve.”
• Headquartered in Bay Area 

Additional Resources:

• https://www.blueshieldca.com/en/home/about-blue-shield/corporate-information/financials
• https://www.blueshieldca.com/content/dam/bsca/en/member/docs/Blue-Shield-of-California-2023-Mission-Report.pdf
• https://www.blueshieldca.com/en/home/about-blue-shield/corporate-information/awards
• Blue Shield Press Release dated April 6, 2022
• Coverage California blog: California Blues
• Recent news about Plan G changes at Blue Shield of California
• Authorized to offer United Healthcare and Blue Shield products

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