Blue Shield Loses State Tax Exemption

In a stunning blow to one of the state’s largest insurers, the California Franchise Tax Board has stripped Blue Shield of California’s tax exemption as a not-for-profit organization. The revocation, first reported on Wednesday by the Los Angeles Times, came after years of criticism against the San Francisco-based insurer. The exemption was apparently revoked last August, and Blue Shield was ordered to file tax returns beginning with the 2013 calendar year.