Tax Services for the Health Plans Industry

In our work with leading health plans clients, we have consistently identified a number of major considerations that affect their operations today from a tax perspective. Among the most notable are: addressing challenges and uncertainty around the Affordable Care Act; managing multistate transfer pricing requirements; integrating finance and tax technologies; and understanding and complying with state statutory and regulatory changes. These issues have both tax compliance and planning implications that cannot be ignored. Although addressing them all can be a tough balancing act, doing so may provide potential value for your organization. Deloitte can help.

Affordable Care Act tax services

With major provisions of the Affordable Care Act taking effect in 2014, commercial health plan insurers/providers are subject to a number of new tax requirements that could challenge tax planning, compliance, and reporting activities. Deloitte can assist organizations in addressing these new requirements, including providing analysis regarding:

  • The annual fee on health insurance plans;
  • Sections 6055 and 6056 information reporting rules;
  • Section 833, medical loss ratio reporting requirements;
  • Section 1341, transitional reinsurance program; and,
  • Section 162(m)(6), which provides a $500,000 limit on compensation deductions for covered health insurance providers.

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Multistate transfer pricing tax planning

Regional and national health plan providers and insurers that conduct business in multiple states often operate a variety of legal entities. Deloitte can assist with dimensions of transfer pricing tax planning, including issues that may affect your organization's corporate tax burden, IRS audit exposure, tax risk management, and cash flow. Our team offers extensive multistate tax and economic skills, knowledge of government policies in the various states, and the specialized experience that transfer pricing tax demands. We can help you align your transfer pricing policies and supply chain strategies, to document your transfer pricing methods in relevant states, to manage transfer pricing controversies that may arise, and coordinate negotiations with state tax authorities.

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State and Local tax planning

State and local tax is a constantly moving target. Even though the economy has slowly improved in recent years, many states are still experiencing budget shortfalls and uncertainty about state and local effects of the Affordable Care Act. As one of the largest state and local tax practices in the U.S., we have dedicated professionals covering 50 states and providing the regional and local footprint to assist health plan providers of virtually any size and scope. We have the experience and technical skills to navigate the complexity created by many thousands of the state, county, and local tax jurisdictions across the country, and we can help you stay in touch with the specific tax provisions affecting payers, including implications of the movement away from income taxes toward premium taxes or gross receipt taxes.

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