Blues hit the jackpot under Republicans’ tax law
Blue Cross Blue Shield insurers reaped billions from last year’s tax overhaul and many say they plan to use the savings to lower premiums.
However, another component of the overhaul will make that difficult.
Thirteen BCBS health insurers saved a total of $2.3 billion in taxes last year alone as a result of the Republican tax law, which cut the corporate tax rate from 35% to 21%, according to an analysis by A.M. Best.
Health Care Service Corporation was the biggest winner among the Blues and raked in $1.1 billion in savings followed by BCBS Michigan at $358 million. New Jersey-based Horizon Healthcare Services also saw more than $300 million in savings.
Many insurers said they plan to use their tax savings to reduce exchange premiums and increase customer benefits.
Read the entire article: Fierce Healthcare