By Eric Klein and Lynsey Mitchel

The CEO of Blue Shield of California, Bruce Bodaken, announced on June 7, 2011, that Blue Shield, a non-profit corporation, will cap its annual net income at 2% citing “a new commitment to help our customers get the health care they need at a price they can better afford.” The announcement was made in an opinion piece in the San Francisco Chronicle. The policy will be implemented for 2010, the year national health care reform was enacted. Blue Shield’s net income exceeded the 2% cap by $180 million last year. Policyholders will be credited $167 million, physicians and hospitals will receive $10 million to support new ways to coordinate care through accountable care organizations and $3 million will go to the Blue Shield of California Foundation.

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