Blue Shield of California loses state tax-exempt status

Authorities have revoked the state tax-exempt status of San Francisco based insurer Blue Shield of California.

The move could potentially put non-profit on the hook for tens of millions of dollars in state taxes each year. According to the LA Times the state quietly stripped Blue Shield of its exemption from California income taxes in August.

The move by the California Franchise Tax Board comes as the state's third-largest health insurer faces fresh criticism over rate hikes, executive pay and $4.2 billion in financial reserves. Blue Shield says its protesting the decision.