The revocation of Blue Shield's tax exemption made big news. But even more important is what happens with the $10 billion in nonprofit assets that the insurer will continue to hold.

State tax authorities revoked Blue Shield’s tax exemption last August, but it's been kept secret until now. 

After 12 years with Blue Shield of California, I resigned last week as Director of Public Policy. I’d raised concerns internally that Blue Shield wasn’t doing nearly enough to meet its duties to the public as a tax-exempt nonprofit, but senior management dismissed them.