A California regulator ruled that nonprofit Blue Shield has no public benefit duty, potentially costing Californians billions of dollars. She refuses to explain her decision. 

The ruling by California’s health plan regulator that Blue Shield has no charitable trust obligation frees the nonprofit insurer to disregard the public good and privatizes its billions in assets. 

The Department of Managed Health Care announced yesterday that it would conduct an examination of Blue Shield’s "charitable trust" obligation, or duty to work for public benefit.

California regulators announced that they'll hold a public hearing on Blue Shield’s proposed acquisition of Care 1st Health Plan. A coalition of consumer groups and I had requested the hearing. 

Since Blue Shield is a nonprofit, which means it is effectively owned by the public, regulators should hold a public hearing before approving management's use of nonprofit assets to acquire another health plan.