News Headlines Article

Nonprofit Blue Shield accused of backing out of $140-million charity pledge
Los Angeles Times

California regulators and consumer groups say insurance giant Blue Shield of California is reneging on a $140-million charitable pledge it made to win approval for a big acquisition.

State officials said last month that the San Francisco insurer had agreed to give $14 million annually for 10 years to Blue Shield’s foundation or another charity – in addition to its regular contributions.

Regulators touted the $140-million commitment as part of a deal approving Blue Shield’s $1.2-billion acquisition of Medicaid insurer Care1st Health Plan.