Why won’t CA regulator explain Blue Shield charitable trust ruling?

California's health plan regulator has so far refused to explain her determination that Blue Shield has no charitable trust obligation. The ruling effectively privatizes Blue Shield, relieving it of any obligation to operate for community benefit and giving its directors license to sell the health plan to a for-profit company without having to set aside for community benefit any of the billions of dollars a sale would net.

Regulator grants Blue Shield bid to privatize nonprofit assets

California’s health plan regulator ruled last month, as reported by the Los Angeles Times, that nonprofit insurer Blue Shield of California has no charitable trust obligation. The ruling means that Blue Shield is free to operate with no regard for the good of the community and if the health plan were ever acquired, the public would be entitled to none of the billions of dollars the sale would net.

CA regulator to Blue Shield: It's your money, do with it what you please

In a stunning decision delivered last week with no explanation, California’s Department of Managed Health Care agreed with Blue Shield that the nonprofit, which has enjoyed a tax exemption for over 70 years, has no duty to operate for the benefit of the community. Blue Shield can spend the billions of dollars in assets it holds without any regard for what's best for the community, according to the state health plan regulator.

What's Leon Panetta going to do about Blue Shield?

When the former defense secretary and CIA chief Leon Panetta joined the Blue Shield board of directors, he said it was because Blue Shield is nonprofit and serves the “welfare of the entire community.” Now Blue Shield has been stripped of its tax exemption, is embroiled in scandal over secret pay to executives, and its lawyers are claiming it has no duty at all to the community. If Panetta meant what he said, he needs to bring management into line. Read this blog post at healthinsurance.org