UC, Blue Shield extend contract covering tens of thousands of state workers
Blue Shield of California agreed to extend a contract that covers tens of thousands of state workers, the insurer said Monday, assuring that the University of California health system will remain in-network for a large group of patients through Aug. 9.
The insurer and the health system have been at odds over a new contract that covers many state workers. The current agreement was originally set to expire Monday, leaving members to fear that they would soon lose in-network coverage of their UC doctors.
The contract covers around 35,000 members of the California Public Employees’ Retirement System, the agency previously estimated. It also covers some employer-sponsored plans, plans from the Covered California marketplace, and some Medicare Advantage plans administered by Blue Shield of California.
Blue Shield of California said in a statement that it will continue negotiating in good faith. The UC system said in a statement that it would continue negotiating “in hopes of reaching a new, fair agreement.”
In a message to patients, UC Davis said that after Aug. 9, patients may have to pay the full cost of their care until a contract is reached.
“We are continuing to make it clear to Blue Shield that we hope to avoid disruptions in your health care and to protect you from higher out of network charges,” the hospital said.
More information about which health plans are affected, and how, is available online from UC Davis Health and Blue Shield of California.
This story was originally published June 30, 2025 at 1:41 PM.
