US health insurance company paid no federal tax in 2018 but got a big refund
15 replies, posted
The Chicago-based company that operates a lucrative network of Blue Cross Blue Shield health insurance plans made out like gangbusters with President Donald Trump’s tax law. Even
though it paid no taxes last year, it collected a massive $1.7 billion tax refund, according to the company’s latest financial report.
The tax giveback boosted the net profit for Health Care Service Corp. to $4.1 billion on $35.9 billion of revenue, according to its filing, which was first reported by Axios. The company
reported $1.3 billion in net profit on $32.6 billion of revenue in 2017.
Corporate taxes were slashed 40 percent by Trump (from 35 percent to 21 percent). The law also eliminated the corporate alternative minimum tax (AMT), which had mandated that
companies pay some minimum tax on their income. That left corporations not only paying significantly lower tax rates but also holding AMT credits from previous years that they
could use for refunds.
The company spent only 64 percent of the premiums it collected in its Obamacare plans on medical care. A provision in the Affordable Care Act requires that insurers spend at least 80
percent of monthly premium dollars for medical costs rather than on administration, marketing or profits. If that threshold isn’t met, the company has to refund money. HCSC said in a
statement that it would pay rebates consistent with federal law, Axios reported.
Meanwhile i pay hundreds of dollars a month to this company for a 1000$ deductable and 30% copay. Fuck this noise
God I hate insurance companies. The whole concept that an entire industry based on taking money from one person and handing to another can thrive fucking baffles me. They don't DO anything, it's infuriating.
And if you actually use the thing you pay for? I hope you enjoy paying higher premiums.
Oh but they do something. They hire very talented people to make sure they spend as little as possible while collecting as much money as possible.
Man, so many company are avoiding tax and yet get money from the damn government itself. That suck, and it seems the bane of our society are business avoiding tax. Imagine if they paid their tax, that would be
such a high leap for the economy and lead to a more stable government.
But that's only if their teams of policy reviewers can't find any legal reasons to drop your coverage.
With the repeated rants against insurance companies, I am reminded of a specific post.
(Not trying to imply you folks are like this guy)
I was not expecting that rapid plot twist, christ on a bike.
THIS IS THE SYSTEM, THIS IS WHAT WE HAVE CHOSEN TO DO, THIS IS WHAT WE ELECTED PEOPLE TO SUPPORT
and anyone who wants this to go away is a socialist
I can't wait till this money trickles down to us because of trickle down economics right?
oh fuck this went on for pages
Private insurance is the embodiment of, "privatize the gains, socialize the loses."
Aye. Faze was known for being a bit of a dumb ass.
that's why obamacare is so reviled, it created a steel beam linking the sick to the healthy. Before the aca they could pick and choose which people to pay for and left the sick to die in poverty.
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