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Board backs health‑service changes after Health Service Board recommends 'flex‑funded' Blue Shield plan
Summary
The Board approved amendments to city employee health‑plan administration that implement a flex‑funded approach for the Blue Shield option, accepting a calculated exposure to claims volatility while limiting immediate rate increases.
The San Francisco Board of Supervisors approved an ordinance amending city health‑service system plan administration after board members reviewed a Health Service Board recommendation to shift the Blue Shield plan from fully insured coverage to a flex‑funded arrangement.
Supervisor David Chiu summarized the changes and the financial trade-offs for supervisors: the city would move away from a fully insured Blue Shield contract because the insurance renewal rates had produced a projected 13.2 percent increase — roughly a $39 million cost increase — under the status quo. The Health…
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