Blue Shield of California, a non-profit commercial health plan, announced on June 7 the return of $180 million in subscriber premiums, a cap of its net revenue at 2 percent, and $10 million in grants for providers throughout California. This marks a new approach taken by a health plan to address public criticism of rising premiums and overall health care costs.

The grants are aimed at hospitals and physician groups committed to developing new ways to coordinate care through Accountable Care Organizations (ACOs). Interested hospitals can find additional information about the Blue Shield ACO grant application program at http://blueshieldca.com/bsc/aboutbsc/aco.jhtml. The application form is available at http://www.blueshieldca.com/provider/announcements/ProviderOpportunity.jhtml, or contact Blue Shield’s Provider Services Liaison Unit at (800) 258-3091.

Grants will be paid in a lump sum or in installments (for example, 50 percent immediately upon award, and 50 percent upon the completion of an appropriate milestone). Grants may also be made in the form of matching funds (for example, for every dollar the grantee invests in its proposed project(s), Blue Shield of California will match it with a grant of up to three dollars).

Completed grant applications must be received by Blue Shield no later than Aug. 1, 2011. Based on the number of submissions, decisions could be announced by Sept. 30, 2011.