Blue Shield Of California Stripped Of Tax-Exempt Status
The insurance company and state regulators faced criticism for not disclosing this decision, which was made seven months ago.
Los Angeles Times:
Why Did It Take 7 Months To Learn Blue Shield Lost Tax-Exempt Status?
Health insurance giant Blue Shield of California and state tax authorities both came under fire for not disclosing seven months ago a landmark decision taking away the insurer's tax-exempt status, which had been in place since 1939. The Times first reported Wednesday that the California Franchise Tax Board had quietly revoked Blue Shield's tax-exempt status in August after a lengthy audit of the nonprofit health plan. (Terhune, 3/18)
Kaiser Health News:
Blue Shield of California Loses Its State Tax Exemption
California tax authorities have stripped Blue Shield of California, the state’s third largest insurer, of its state tax exemption and ordered the company to file returns dating to 2013, potentially costing the company tens of millions of dollars. At issue in the unusual case is whether the company is doing anything different from its for-profit competitors to warrant its tax break. As a nonprofit company, Blue Shield is expected to work for the public good in exchange for the state tax exemption. (Gold, 3/18)
Los Angeles Times:
With Billions In The Bank, Blue Shield Of California Loses Its State Tax-Exempt Status
Authorities have revoked the tax-exempt status of nonprofit Blue Shield of California, potentially putting it on the hook for tens of millions of dollars in state taxes each year. The move by the California Franchise Tax Board comes as the state's third-largest health insurer faces fresh criticism over its rate hikes, executive pay and $4.2 billion in financial reserves. (Terhune, 3/18)
