Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Life Health > Health Insurance

Calif. Blue Cross Faces Premium Tax Suit

X
Your article was successfully shared with the contacts you provided.

NU Online News Service, Nov. 24, 2004, 4:28 p.m. EST

A California activist group wants to force WellPoint Health Networks Inc., Thousand Oaks, Calif., to pay the state $500 million in additional premium taxes.[@@]

The group, the Foundation for Taxpayer and Consumer Rights, Santa Monica, Calif., says WellPoint’s Blue Cross of California unit has avoided paying preferred provider organization coverage premium taxes by describing the PPO operation as a health maintenance organization operation.

California treats PPOs as insurance companies and requires them to pay premium taxes.

The state treats HMOs as corporations and lets them pay a lower corporate tax rate.

The taxpayer foundation has made its case by filing a suit in a state court in Los Angeles.

WellPoint has argued that it has paid all required taxes and passed state tax audits.


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.