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Retirees and clinicians press SFHSS on out‑of‑county transfers; insurers asked for contracting data

San Francisco Health Service Board (San Francisco Health Service System) · November 13, 2025
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Summary

Multiple public commenters, clinicians and board members urged SFHSS, Kaiser and Blue Shield to investigate and reduce out‑of‑county nursing‑home transfers and to provide contracting lists showing in‑county skilled‑nursing capacity; insurers agreed to provide lists and follow up with HSS staff.

At the Nov. 13 Health Service Board meeting, multiple retirees, clinicians and community advocates urged the board to address reports that San Francisco residents are being discharged to out‑of‑county nursing homes, sometimes far from family and advocates.

Dr. Teresa Palmer, a retired Laguna Honda physician, told the board, "We know that there's somewhere around 1000 people a year that are transferred," and argued that hospitals push to vacate beds quickly without fully informing patients of CMS/Medicare rights to appropriate skilled‑nursing placements. She asked the board to convene a working group including Laguna Honda leaders, the hospital council, the Board of Supervisors and HSS staff to develop solutions.

Public commenters described cases where transfers led to delayed or inferior care and urged better contracting transparency from insurers. John Jimenez, a longtime Laguna Honda volunteer, and other speakers emphasized the importance of keeping medically complex residents in San Francisco so families can visit and advocate.

At the contracted plans update, Kaiser Permanente representatives announced changes to the Medicare formulary effective Jan. 1, 2026, that reclassify certain high‑cost HIV drugs as a Tier‑5 specialty benefit (20% coinsurance capped at $100 per 30‑day supply under SFHSS design); Kaiser offered to provide a list of affected drugs. Blue Shield reported a new multiyear agreement with Sutter Health and acknowledged an apparent member communication sent by Providence that caused confusion for some SFHSS Medicare retirees in Humboldt, Napa and Sonoma counties; Blue Shield said it will work with SFHSS staff to identify and proactively reach affected members.

Board members and public speakers asked both insurers to return with more detailed information about which skilled‑nursing and rehabilitation facilities each plan contracts with in San Francisco, noting that a Blue Shield list shared with commenters did not include Laguna Honda. Blue Shield and Kaiser reps committed to providing contracting lists and said they would work with Executive Director Ray Guillen and staff to clarify member options.

Next steps: Insurers will provide the requested drug list (Kaiser) and facility contracting information (Kaiser and Blue Shield) to SFHSS staff; the board requested an agenda item to review out‑of‑county transfers and insurer contracting in more detail.