Chartered as a nonprofit, Blue Shield of California has a legal duty to serve the public interest. “For care, not profit" is how it advertises itself. Yet Blue Shield acts nothing like a nonprofit. It has amassed a surplus of over $4 billion, pays multi-million dollar executive salaries, and charges among the highest rates in California. In 2014, state auditors blasted Blue Shield for stockpiling “extraordinarily high surpluses” and “not operating exclusively for the promotion of civic betterment or social welfare.”
Even worse, Blue Shield’s corporate leaders have been quietly scheming for years to steer billions of dollars in public, nonprofit assets into private hands--and they are on the brink of getting away with it. That's $10 billion that won't be available to meet public healthcare needs if Blue Shield is not stopped.
I'm a former Blue Shield Director of Public Policy who resigned in protest and is fighting to expose and prevent this massive rip-off. For more about Blue Shield’s abuses see my blog posts and news coverage of the campaign.
LOS ANGELES TIMES: Blue shield faces new criticism of shortchanging consumers in California
Los angeles Times: Insurer Blue Shield sues ex-executive who became nonprofit's critic
nonprofit quarterly: Questions about Leon Panetta, Blue Shield of California, & The Nonprofit Sector
Los angeles times: Big hike in executive pay at nonprofit Blue Shield draws state scrutiny
LOS angeles times: Blue Shield faces more heat over nonprofit status, $1.2-billion deal
San francisco business times: Thanks to whistleblower, Blue Shield's $1.25 billion California acquisition under review