News Headlines Article

Court Rules Blue Cross, Blue Shield May Need To Pay State Health Premiums Tax
California Healthline

A state court ruled last week that two health care service plans may need to pay the state’s gross premiums tax because they may qualify as health insurers.

The health care service plans -– Blue Shield of California and Anthem Blue Cross — argued that they were regulated by the Department of Managed Health Care, not the California Department of Insurance, and were not insurers subject to the gross premiums tax.

But California’s Second District Court of Appeals ruled on Sept. 25 in Myers v. State Board of Equalization that those service plans’ business seems to be built on selling and administering indemnity-based insurance policies, so the gross premium tax may apply to them.