BlueCross BlueShield Companies experienced a net tax savings of $2.3 billion after the passage of the Tax Cuts and Jobs Act.
By: Thomas Beaton
– BlueCross BlueShield companies saw a total tax savings of $2.3 billion after passage of last year’s Tax Cuts and Jobs Act (TCJA), according to a new creditor’s briefingfrom AM Best.
BCBS companies reported a mix of gains and losses under the TCJA, but the new corporate tax rate of 21 percent helped offset BCBS tax losses across the US.
Health Care Service Corporation, a BCBS organization that experienced tax losses in 2015, reported significant tax alleviations in 2017. The company had increased their tax-related revenues from $80 million at the end of 2016 to $3.2 billion by 2017. Two BCBS payers had net changes of deferred income tax by $500 million and five payers saw increases of $100 million or more after the bill’s passage.
Fifteen BCBS companies reported a tax benefit of nearly $4.7 billion before accounting for net changes in tax assets. Only two BCBS payers had tax losses after accounting for changes in the TCJA.