Nonprofit San Francisco-based Blue Shield of California, the state's third-largest health insurer, faces new pressure to lower its rates for members, according to a Los Angeles Times report.
The insurer recently came under scrutiny after the California Franchise Tax Board revoked Blue Shield's state tax-exempt status. The CFTB revoked the insurer's state tax-exempt status in August 2014. However, news of the state's move only recently surfaced.
Blue Shield has told the Los Angeles Times that it is protesting the decision.
In the meantime, the public has debated whether the nonprofit is fulfilling its stated mission of making sure people in California "have access to high-quality healthcare at an affordable price," according to the report. Additionally, some people are calling for Blue Shield to draw on its $4.2 billion in financial reserves and not charge employers and consumers as much, the report reads.
According to the report, California regulators have deemed three Blue Shield rate increases unreasonable since 2013, but officials do not have the authority to block them.
Blue Shield told the Los Angeles Times it has appropriate rates that reflect the rising cost of medical care, and it rejected the idea of using its reserves to lower premiums as unsustainable.
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