The new Consumer Operated and Oriented Plan (CO-OP) health insurers should keep their political views to themselves.
IRS officials discusses that CO-OP guideline in IRS Notice 2011-23.
In the notice, officials talk about IRS efforts to flesh out Internal Revenue Code Section 501(c)(29), the section of the tax code that will govern the CO-OP carriers.
Congress added Section 501(c)(29) to the tax code in Section 1322(h) of the Patient Protection and Affordable Care Act (PPACA), a major component of the Affordable Care Act.
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Republicans in Congress are trying to repeal the Affordable Care Act or block implementation.
If PPACA Section 1322 takes effect as written, CO-OPs will provide a nonprofit, member-owned alternative to for-profit insurers and government-run health programs.
To qualify for a CO-OP tax exemption, a CO-OP must be a “qualified nonprofit health insurance issuer” that is organized as a nonprofit, member corporation under state law and focuses “substantially all” of its activities on issuing qualified individual and small group health coverage.
A company cannot become a qualified issuer if it