IRS Issues Final Rules On Medical Loss Computations

Law360, New York (January 6, 2014, 1:41 PM EST) -- The Internal Revenue Service released final regulations on Monday explaining how Blue Cross and Blue Shield and other health care organizations should compute and apply medical-loss ratios under the Affordable Care Act.

The Internal Revenue Code treats Blue Cross and Blue Shield organizations and other qualifying health care organizations as stock insurance companies and gives them a special deduction and other incentives if they cap their profits and spend at least 85 percent of their premiums on clinical services. This percentage is known as a medical-loss...
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