Home > Health Insurance Company: Fraud, Denials and Other Issues > Blue Cross Blue Shield Can Lose Tax Exemption Under Health Care Reform

Blue Cross Blue Shield Can Lose Tax Exemption Under Health Care Reform

Blue Cross Blue Shield and other non-profit health insurance companies can lose their tax exemption if they do not spend 85% of their premiums on actual medical care (not profits or compensation for executives) thanks to Section 9016 of the Affordable Care Act. Here is the exact language of the provision:

(Sec. 9016) Requires Blue Cross or Blue Shield organizations or other nonprofit organizations that provide health insurance to reimburse at least 85% of the cost of clinical services provided to their enrollees to be eligible for special tax benefits currently provided to such organizations.

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