U.S. Health Secretary Kathleen Sebelius said the decision of Blue Shield of California to limit its profits is “a great step forward in lowering costs” for health reform.

A large California health insurer has caved in to political pressure about its profits, pledging to limit them to 2% of net income. The announcement of Blue Shield of California, one of the state’s largest health insurers, seems likely to spawn followers.

Blue Shield of California pledged today (June 7) to limit its annual net income to no more than 2% of revenue, a move the company said was “bold.”