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California’s four largest health plans could owe $10B in back taxes
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Depending on how pending lawsuits play out in court, California’s four largest health plans could owe the state $10 billion in back taxes–and be subject to a hefty tax bill in the future, according to the San Jose Mercury News.

The cases hinge on whether the four health plans, which control almost 70 percent of California’s health insurance market, are “insurers” and should be subject to state law that requires almost all insurance companies to pay a 2.35 percent state tax on health insurance premiums they collect each year. The tax is paid in lieu of almost all other state taxes.

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