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Blue Shield, Awarded State Vaccine Contract, Spent Years Cultivating Relationship with Newsom

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Gavin Newsom was just making a name for himself as mayor of San Francisco in 2005 when Blue Shield of California wrote him its first major check.

The young, business-friendly Democrat had exploded onto the national scene the year before by issuing same-sex marriage licenses in San Francisco, and he was pushing his next big idea, called Project Homeless Connect. The initiative would host bazaar-style events in neighborhoods across the city, linking homeless people to services like food assistance and health care.

Newsom needed financial support from businesses, and Blue Shield answered with a $25,000 contribution.

Over the next 16 years, as Newsom’s political career flourished, the health insurance behemoth became one of his most generous and trusted supporters. It contributed nearly $23 million to Newsom’s campaigns and special causes, according to a California Healthline analysis of political and charitable contributions. Of that, nearly 90% has funded the homelessness initiatives that critics and allies say are dearest to Newsom’s heart.

Newsom, elected governor in 2018, in turn has rewarded Blue Shield and its executives with positions of power during the coronavirus pandemic, which has claimed nearly 56,000 Californians’ lives.

Sponsored

Facing mounting criticism early this year over the chaotic COVID-19 vaccination rollout and a growing recall effort to remove him from office, Newsom gave the insurer a $15 million, no-bid contract to take over California’s life-or-death effort to quickly vaccinate its 40 million residents. Last spring, Newsom also enlisted Blue Shield’s CEO, Paul Markovich, to help steer the state’s coronavirus testing strategy, another component of the state’s pandemic response that had faltered.

Read the full story.

Samantha Young and Angela Hart, Kaiser Health News

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