Authorities Revoke Blue Shield Of California's Tax-exempt Status

Tax regulators in California have revoked the tax-exempt status of Blue Shield of California — the state's third largest health insurer.

The company has come under fire for rate hikes, high executive compensation, and large revenues and reserves. The company is appealing the decision.

Shana Alex Charles is the director of Health Insurance Studies at UCLA's Center for Health Policy Research.

She tells Here & Now's Jeremy Hobson why Blue Shield is facing criticism and what loss of the state tax exempt status might mean for the company.