California Insurer Faces Whistleblower Complaint Over Health Law Taxes

Whistle blower or whistleblower concept as a symbol of a secret informer agent posing as an employee with his cast shadow of a whistle as a metaphor for inside infoermation on misconduct in a 3D illustration style.

A federal whistleblower complaint alleges that a major California insurer failed to pay an estimated $89 million in taxes on premium revenue as required under the Affordable Care Act.

The complaint against Blue Shield of California focuses on the taxation of certain health plans that are funded by both an employer and insurer. It could spark more scrutiny by federal officials into whether all insurers are paying their fair share of taxes on premiums.

The ACA’s health insurance tax is one of several fees designed to help fund the health law. Employers’ self-funded plans are exempt from this ACA tax. But traditional plans, in which health insurers are fully responsible for paying medical claims in exchange for premiums, are subject to the tax. (Read More).