Anthem (Blue Cross) is not the same company as Blue Shield of California
Did you ever wonder about the relationship between Blue Cross and Blue Shield, here in California? This article seeks to help clear up any misunderstandings. No, Anthem Blue Cross and Blue Shield of California were never the same company: They are both independent licensees of the Blue Cross Blue Shield Association (BCBSA), which is a federation of 33 independent and locally-operated BCBS companies that provide health insurance across the United States.
In some states certain “licensees” cooperate on the same plan and this could explain some confusion. Yet, in California there are two distinct Blue-Branded companies:
- Anthem Blue Cross (part of Elevance Health)
- Blue Shield of California (an independent company)
They have very different ownership structures. In this article, we are presenting a brief history of each company to help clarify their roles in the California marketplace…especially for seniors age 65 and older, which is the focus of this website.
The History of Blue Shield of California
Blue Shield of California has a storied past that highlights its unwavering dedication to providing high-quality, affordable healthcare to the people of California. Established in 1939 in San Francisco, the organization has evolved into one of the state’s largest health plans, currently serving millions of members. Currently, it is the state’s leading issuer of medigap (Medicare Supplement) insurance policies.
From the outset, Blue Shield of California has been guided by a mission-focused approach rather than the pursuit of profits. This dedication is embodied in their unique 2% Pledge, which limits their net income to 2% of revenue. Any earnings beyond this limit are returned to customers or invested in community initiatives.
Over the years, Blue Shield of California has continually adapted to address the shifting needs of its members and the broader healthcare environment. In 2019, the company moved its headquarters to Oakland, solidifying its deep-rooted connection to the Bay Area.
Financial stability has always been a key aspect of Blue Shield of California’s operations. In 2023, the company reported revenues of $25.1 billion and a net income of $130 million, showcasing its ability to maintain financial health while staying true to its mission-driven ethos.
Throughout its history, Blue Shield of California has earned accolades for its ethical business practices, community involvement, and positive workplace culture. The Ethisphere Institute has named it one of the World’s Most Ethical Companies, and the Civic 50 has recognized it as one of the country’s most community-oriented companies.
The company’s commitment to diversity and inclusion is another significant aspect of its legacy. Blue Shield of California has consistently been honored as a top workplace for LGBTQ+ employees by the Human Rights Campaign and has been listed among DiversityInc’s Top Regional Companies.
Blue Shield of California has remained steadfast in its founding principles while evolving to meet the demands of a changing healthcare landscape. Its ongoing commitment to its mission, financial prudence, and community impact ensures its continued leadership in California’s healthcare system.
The Evolution of Blue Cross of California
1936 – The Beginning
Blue Cross of California was founded in 1936. Over the years, it has evolved to become a trusted name in health insurance.
An Independent Licensee
Blue Cross of California operates independently but is licensed to use the Blue Cross Blue Shield trademarks. This means you get the reliability of a well-known brand with the personalized service of a local entity.
2004 – A New Identity
In 2004, Blue Cross of California rebranded to Anthem Blue Cross. This was part of a broader strategy by its parent company, Anthem Inc., to unify its subsidiaries under the Anthem name.
Mergers and Changes
In 2004, Anthem Insurance Company merged with WellPoint Health Networks Inc., adopting the WellPoint name for a period. By 2014, WellPoint decided to change its name to Anthem, Inc. to streamline its brand identity.
The Latest Chapter
In 2022, another significant change occurred when Anthem, Inc. rebranded as Elevance Health. This new name reflects a broader mission to elevate healthcare and advance well-being. With this change, their stock ticker symbol also changed from “ANTM” to “ELV.”
Looking Forward
Elevance Health continues to own and operate various subsidiaries, including those previously known as WellPoint and Anthem. This latest evolution ensures that the company remains at the forefront of healthcare, committed to providing you with top-notch service and support.
We hope this history helps you understand the legacy and current focus of these companies.
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