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Will revocation of Calif. Blue Shield’s tax status start wave?

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Will California’s revocation of  Blue Shield of California’s tax-exempt status lead to similar actions against some other health insurers, and some hospital systems, that call themselves “nonprofit” although they have big reserves, pay their executives multimillion-dollar salaries, charge very high prices and  create a comfortable settings for directors to profit from board memberships.

The old semi-joke  is that the only difference between “for-profit” and “nonprofit” hospitals systems is simply that the latter don’t pay taxes because of their political power. But tax-exemption criteria can vary a lot state by state. It’s dangerous to generalize.


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