Blue Shielding Its Profits 0
The California Franchise Tax Board has yanked Blue Shield of California’s non-profit status because, surprise, Blue Shield makes lots of profits. Blue Shield, natch, will appeal. Here’s a bit from the story:
“It also opens the door for us to challenge the tax exemption of a host of other not-for-profit companies that act as though they were for-profit companies by stockpiling cash and paying executives seven-figure salaries and having skyboxes,” said Jamie Court, president of Santa Monica-based Consumer Watchdog.
Court was referring to Blue Shield’s $2.5 million purchase of a skybox at Levi’s Stadium, the San Francisco 49ers’ new home in Santa Clara. Blue Shield has called the skybox a business expense needed to increase sales.
I am mildly surprised that Blue Cross did not justify the skybox at the football palace as a treatment for acrophobia.