Blue Shield Drops 3 Hospitals in Dispute

From Times Staff, Wire Reports

Blue Shield of California has dropped three prominent San Jose hospitals from its network over a contract dispute that could raise costs and disrupt health care for as many as 75,000 subscribers in Santa Clara County.

The health insurer also tried to shift about 10,000 of its members from the San Jose Medical Group--essentially forcing them to change doctors or pay higher fees--but the California Department of Managed Care blocked that move.

For now, the insurer must allow its subscribers to see San Jose Medical Group doctors while contract negotiations continue.

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