Blue Shield Of California Loses Exemption From State Taxes
NPR: California tax authorities have stripped Blue Shield of California, the state’s third largest insurer, of its tax-exempt status in California and ordered the firm 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 exemption from state taxes.
“We’re talking about a $10 billion public asset, and the only real return the public is getting is $35 million in charitable contributions each year? That’s just a lousy deal. It’s time to cash in that asset.”
– Michael Johnson, former policy director, Blue Shield of California” … (more)
EDITOR: The reasons for stripping California Blue Shield of tax exempt status are exactly the same as the situation with Lancaster General Health. Their monopolistic strangle hold on health services enables them to earn a hundred million a year by overcharging which the citizenry paying much more for health insurance. They give away pehaps $2 million, with much of it self serving.
Perhaps this is one of the reason they want to affiliate with University of Pennsylvania Health, to further mask what they are doing their deceit.
