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Thanks to whistleblower, Blue Shield’s $1.25 billion California acquisition under review
San Francisco Business Times

The state Department of Managed Health Care is reviewing Blue Shield of California’s $1.25 billion bid to acquire Medi-Cal specialist Care1st, after complaints from whistleblower Michael Johnson, a former Blue Shield executive, and several consumer groups. A hearing on the deal is scheduled for early June.

San Francisco-based Blue Shield announced the proposed deal in early December. Later, thanks in part to issues like those raised by Johnson, a former public policy director at Blue Shield, the giant insurer had its California tax-exempt status yanked by the Franchise Tax Board, increasing scrutiny on Blue Shield.

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