Blue Cross Blue Shield Loses Bid to Get $3 Million Tax Refund

Blue Cross Blue Shield lost its bid for over $3 million in a tax refund because the stop-loss policies it sells to employers that self-fund their workers’ health insurance are subject to premium and maintenance taxes, a divided Texas Supreme Court said Friday.

Texas allows BCBS to sell stop-loss insurance that protects against employers who self-fund employees’ benefit plans, but do not want to assume 100% of the liability for losses arising from the plans. BCBS paid a premium tax on the stop-loss policies and a maintenance tax under the Insurance Code in 2012, the period at issue.

The insurer …