Blue Shield of California claims that despite being a nonprofit it has no legal duty to serve the public interest. That attitude is reflected in the way it operates (just like a for-profit company), which is what led California to revoke its tax exemption last year. But even with that action by tax authorities, Blue Shield continues to sit on billions of dollars in nonprofit funds. So it’s critical to put controls on how that money is spent to ensure it is used for public benefit. For the first time in decades, that may be about to happen. In a public hearing this week on Blue Shield’s proposed $1.2 billion acquisition of another health plan, California Department of Managed Health Care Director Shelley Rouillard said she would determine whether Blue Shield has a "charitable trust obligation." If she determines that it does, Blue Shield could no longer pretend it has no legal duty to serve the public good. For more on the hearing, see this coverage by the Los Angeles Times: http://www.latimes.com/business/la-fi-blue-shield-deal-20150609-story.html