Dive Brief:
- Blue Shield of California had requested confidentiality from state regulators on the price it's paying for Care1st, which has more than 500,000 members primarily in Medicaid managed-care plans, as well as some under Medicare.
- The attempt at secrecy only drew fire for the non-profit Blue Shield, which has already been under scrutiny regarding its massive $4.2 billion in financial reserves, the loss of its state tax-exempt status and what critics consider for-profit style business strategies.
- The California Department of Managed Health Care released the details on the new business deal Monday following a public-records request from The Los Angeles Times.
Dive Insight:
The acquisition, awaiting approval from regulators, has prompted calls for public hearings on the deal. One of the most vocal critics is the company's former public policy director, Michael Johnson, who has initiated an online petition asking Blue Shield to convert its status to for-profit.
Blue Shield stated that it sought confidentiality per the terms of its agreement with Care1st and that its intent was to disclose the price following the completion of the deal.