The Law of Tax-Exempt Healthcare Organizations, 3rd Edition

CHAPTER THIRTEEN

Other Provider and Supplier Organizations

• § 13.1 Blue Cross and Blue Shield Associations
  • (b) Exemption as Social Welfare Organizations
  • (f) Health Reform Law Changes (New)
• § 13.3 Qualified Health Insurance Issuers (New)
• § 13.4 Health Insurance Exchanges (New)
  • (a) General Rules
  • (b) State Decisions
• § 13.5 Accountable Care Organizations (New)
  • (a) ACOs in General
  • (b) CMS Proposed Regulations
  • (c) Tax-Exempt Organization Issues

§ 13.1 BLUE CROSS AND BLUE SHIELD ASSOCIATIONS

(b) Exemption as Social Welfare Organizations

p. 312, n. 23. Delete material following first closing parenthesis and insert:

, aff'd, 2008-1 U.S.T.C. ¶50,160 (9th Cir. 2008), cert. den., 129 S. Ct. 898 (2009).

p. 313, fourth complete paragraph. Insert footnote at end of last line:

^28.1 This litigation is summarized in WellPoint, Inc. & Subsidiaries v. Commissioner, 96 T.C.M. 260 (2008), aff'd, 599 F.3d 641 (7th Cir. 2010).

p. 318. Insert following carryover paragraph, before heading:

(f) Health Reform Law Changes (New)

As discussed, the federal tax law provides a special deduction (that facilitates the accumulation of capital) and higher unearned premium reserve for certain Blue Cross and Blue Shield organizations (and comparable entities) that satisfy various criteria, including being in existence in 1986.^56.1 The health law reform legislation enacted in 2010 amended this body of law to provide that it does not apply to an organization unless the organization's percentage of total premium ...