Nonprofit Blue Shield Accused of Backing Out of $140M Charity Pledge

California regulators and consumer groups say insurance giant Blue Shield of California is reneging on a $140 million charitable pledge it made to win approval for a big acquisition.

State officials said last month that the San Francisco insurer had agreed to give $14 million annually for 10 years to Blue Shield’s foundation or another charity–in addition to its regular contributions.

Regulators touted the $140 million commitment as part of a deal approving Blue Shield’s $1.2 billion acquisition of Medicaid insurer Care1st Health Plan.

But Blue Shield says the agreement calls for a minimum donation of $14 million annually, and it’s under no obligation to go beyond its normal foundation giving of about $35 million annually.