Heads-Up for California Providers: Anticipated Changes to Blue Shield Behavioral Health Contracts
As of January 1, 2026, Blue Shield of California (BSCA) is expected to bring all behavioral health services in-house
A significant contracting shift is on the horizon for behavioral health providers in California. As of January 1, 2026, Blue Shield of California (BSCA) is expected to bring all behavioral health services in-house, ending its current behavioral health network relationship with Magellan.
While Blue Shield has not yet issued a formal announcement, Magellan has confirmed through multiple contract discussions that it will not renew behavioral health contracts with BSCA. Under regulatory requirements, BSCA must provide providers with at least 90 days’ notice—a formal announcement is anticipated by late August or early September 2025.
What’s already in effect:
As of January 1, 2025, BSCA began managing non-ABA behavioral health utilization management and reviews internally—but only for the following plan types:
Self-funded PPO plans (ASO, Shared Advantage, Shared Advantage Plus)
CalPERS Platinum/Gold PPO plans
What this means for your facility:
If you currently hold in-network contracts with Magellan, now is the time to consider beginning the direct contracting process with Blue Shield of California to help maintain continuity of care and network participation into 2026.