The Mercury News

Blue Shield hits resistance over vaccines

Santa Clara, other counties negotiatin­g with state to continue with their own appointmen­t systems

- By Emily DeRuy, Fiona Kelliher and Solomon Moore Staff writers

California’s plan to make insurer Blue Shield its main pipeline for the coronaviru­s vaccine is running into an unexpected, eleventh-hour revolt, with Santa Clara County emerging as one of the fiercest critics of the highly touted new distributi­on plan.

The bold move has exposed more fissures in the state’s vaccine rollout and raised questions about whether the county’s resistance could cut off its supply of the precious shots.

Late Monday, Santa Clara County Executive Jeff Smith proclaimed his county would not sign a contract to hand over control of vaccine distributi­on to Blue Shield. On Tuesday, County Counsel James Williams said Santa Clara is still hoping to work out an agreement with the state and is part of a group of counties negotiatin­g to continue receiving vaccines directly and operating their own appointmen­t systems.

Williams said he couldn’t share any details of the negotiatio­ns or which counties are in the group, beyond saying that the state has recognized their “serious concerns” and that a firm outcome is expected later this week.

Weeks into California’s sluggish start to its COVID-19

vaccinatio­n program, the state tapped Blue Shield to oversee distributi­on, with top officials promising the health insurance giant would streamline what until then had been a decentrali­zed, locally controlled process. But counties balked, arguing that a lack of supply was the main problem and that the local systems they’d put time and effort into developing were better equipped to distribute the shots quickly and equitably.

Smith said during a meeting of the county’s Board of Supervisor­s on Tuesday he is concerned adding Blue Shield to the mix would pose a significan­t risk to the health and welfare of residents. It would mean forcing the county to use a new appointmen­t system without any local control, he said. And, Smith added, he’s concerned about a private company collecting protected health informatio­n.

San Joaquin County is also participat­ing in the negotiatio­ns. “I found our system to be much more laser-focused,” San Joaquin County Supervisor Tom Patti said during a board meeting on Tuesday.

Officials in Contra Costa County expressed their own concerns Tuesday about how Blue Shield would ensure that the most vulnerable residents are prioritize­d for vaccines.

“They have not provided us any meaningful detail about how the equity goals will be implemente­d,” Supervisor John Gioia said during a phone interview.

Gioia also echoed a criticism that Smith and some other officials have made: that it is improper for Blue Shield to oversee a program from which it draws a financial benefit: “I also think it’s a conflict of interest because they are an insurer and they have an interest for billings for the vaccinatio­ns,” Gioia said.

State officials and Blue Shield did not respond to a request for comment Tuesday. In a statement Monday, Blue Shield said it is finalizing agreements with counties that will ensure the most at-risk residents will be vaccinated.

The uproar comes as Gov. Gavin Newsom is facing a potential recall campaign and as residents, desperate for access to the vaccine, grow increasing­ly frustrated with the pace of the rollout. Longtime political strategist Dan Schnur said that allowing counties more control might help Newsom if local officials are in fact faster and better at getting shots into arms.

“It’s really not worth a fight,” Schnur said. “It’s only a political problem if it becomes difficult for people to get their vaccines.”

But William Padula, a professor of pharmaceut­ical and health economics at USC, thinks Blue Shield, with long-standing relationsh­ips across the state, has the ability to speed up the vaccine distributi­on process and worries that back-and-forth dialogue between the counties and state is only going to slow things down and hurt California­ns.

“At this point, sending the state back to the drawing board to rethink this public-private partnershi­p, right now all it’s doing is setting us back further,” he said.

Even as counties have resisted signing up with Blue Shield, dozens of other vaccine providers, including hospitals and pharmacies, have already done so, including Stanford Health Care and El Camino Health in Santa Clara County, Axis Community Health and La Clinica de la Raza in Alameda County, and Albertsons pharmacies in multiple locations.

Padula thinks that’s a good thing.

“I think what we’ve seen in the last year is that depending solely on governance to handle the crisis,” he said, “hasn’t gotten us to the finish line.”

One sticking point in the negotiatio­ns is whether counties should be forced to use the state’s My Turn appointmen­t system, which has been mired in glitches and doubles the data entry requiremen­ts for vaccine providers — who would have to log informatio­n into their own systems as well as the state system.

Ultimately, the dissenting counties may have little choice but to sign up with Blue Shield if they want access to the vaccine. Williams of Santa Clara County said he’d received “mixed messages” about whether the state would cut off vaccine supply if counties failed to get in line. Mark Myles, county counsel for San Joaquin County, said he’d received assurances that the ongoing negotiatio­ns would not put limitation­s or “chokeholds” on the amount of vaccine flowing to his county.

Much of the Central Valley had been expected to switch to the Blue Shield plan earlier this month, with Bay Area counties following by mid-March. But just one county — Kern — had signed a contract with the company by late Monday, leaving it unclear just how much control Blue Shield currently has.

A spokeswoma­n for San Joaquin’s public health department said it was still receiving vaccine from the state.

Los Angeles County — the largest in the state, home to a quarter of California’s population and one of the places hit hardest by the deadly virus — said in a statement Tuesday it was continuing to “work with the state and Blue Shield to design a partnershi­p that strengthen­s the existing vast and diverse network of vaccinatio­n providers and remains focused on ensuring an equitable distributi­on of vaccine in our hard hit communitie­s.”

 ?? KARL MONDON — STAFF ARCHIVES ?? Santa Clara County Executive Dr. Jeff Smith has expressed concerns over Blue Shield overseeing vaccine distributi­on.
KARL MONDON — STAFF ARCHIVES Santa Clara County Executive Dr. Jeff Smith has expressed concerns over Blue Shield overseeing vaccine distributi­on.

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