News Headlines Article

Tax agency to Blue Shield: You owe us big time
Sacramento Business Journal

The California Franchise Tax Board has told Blue Shield of California, one of the state’s largest health insurers, that it’s tax-exempt status is revoked and it’s “on the hook for tens of millions of dollars in state taxes each year.”

That’s the word from the Los Angeles Times, which broke the story Wednesday morning, noting that the San Francisco-based health insurance giant, with $13.6 billion in 2014 revenue, has faced increasing criticism in recent years for steep rate increases, high executive pay and huge financial reserves — at $4.2 billion, roughly four times what the national Blue Cross and Blue Shield Association requires.