Payment to charitable foundations is not “business expense”

After Wellpoint, a for-profit health insurance company, acquired three nonprofit Blue Cross-Blue Shield companies by merger in the 1990s, the Attorneys General of Connecticut, Kentucky and Ohio sued Wellpoint (then operating under its former name of Anthem, Inc.) to recover assets they said were charitable assets of the nonprofit insurers.  They ultimately settled the case for more than $113 million to be paid to healthcare foundations.