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TLDR: Blue Shield, a non-profit, have been amassing profit to acquire Care1st which is a for-profit health insurance for 1.2 billion. CA tax auditors check the
by esturk 11y ago
TLDR: Blue Shield, a non-profit, have been amassing profit to acquire Care1st which is a for-profit health insurance for 1.2 billion. CA tax auditors check the books for the last 7 years and claim that Blue Shield willfully kept the profits from returning to physicians/customers. Now Blue Shield will lose their tax exempt status.
- bkeroack 11y agoReading a little deeper into the article, they actually are prohibited from distributing any assets to private persons (shareholders, physicians). Yet even the CEO claimed otherwise at one point. As a nonprofit they should have taken their surpluses and used them to offer low cost health plans or other social benefits. Instead they just hoarded the cash.
- r0m4n0 11y agoMore specifically, they will lose their CA non profit exemption status. They already have been paying federal taxes as a for profit.