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Blue Shield criticized for Levi’s Stadium skybox

By Josh Richman
Tuesday, August 19th, 2014 at 5:20 pm in 2014 general, ballot measures.

The campaign for a ballot measure to let the state insurance commissioner veto health insurance rate hikes is pointing to Blue Shield of California’s pricey luxury skybox at the new Levis’s Stadium as a sign that insurers’ spending is out of control.

Levi's Stadium luxury suiteConsumer Watchdog and the Yes on 45 campaign sent a letter Tuesday to California Attorney General Kamala Harris urging her to investigate “Blue Shield’s abuse of its non-profit status” and crack down on its spending.

The letter cites a San Francisco Chronicle article which said suites of the type that Blue Shield got at the San Francisco 49ers’ new home are “priced at between $250,000 and $400,000 a year and require a 10- or 20-year commitment. That puts the price at anywhere from $2.5 million to $8 million.”

“We urge you to investigate Blue Shield’s abuse of its non-profit status and use your authority to impose a ‘charitable trust’ on Blue Shield’s assets and block any additional wasteful spending that robs taxpayers and average California patients of their financial health,” Consumer Watchdog President Jamie Court wrote to Harris.

Proposition 45 “will ensure that companies like Blue Shield are not increasing premium charges to patients to fund excessive executive compensation, lavish entertainment and excessive reserves,” Court wrote. “Under current law, the California Department of Insurance does not yet have the authority to block excessive rate increases that funded Blue Shield’s skybox. Before November, only you have the power to protect California taxpayers.”

Neither the No on Prop 45 campaign, known as Californians Against Higher Health Care Costs, nor Blue Shield of California answered e-mails seeking comment Tuesday. Blue Shield spokesman Sean Barry told the Chronicle over the weekend that the luxury box’s primary purpose “is to interact social with some of our larger membership groups,” and it won’t be available to executives for “their personal use.”

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  • RRSenileColumnist

    There should be NO luxury boxes for anybody! Only workers, peasants and soldiers are permitted to attend games!

  • Elwood

    Right on, comrade!