The California Franchise Tax Board has revoked Blue Shield's tax-exempt status as a nonprofit.
It's long been debated whether the insurer is doing enough public good to maintain its standing as a nonprofit. And according to the Los Angeles Times, which first reported the story Wednesday, this move by the state could put Blue Shield on the hook for million of dollars in taxes every year.
Los Angeles Times reporter Chad Terhune joined Take Two for more on the change in the company's status.
University of Southern California health care economist Glenn Melnick explained how common nonprofit health insurers are and how their revenues compare with for-profit insurers.