Small insurance companies facing scrutiny receive IRS deal offer

InsuranceBee and Hiscox launch insurance agent partner program

The goal of the deal is to ensure tax payment plus interest in exchange for dropping the case. The I.R.S. has offered small insurance companies under tax avoidance scrutiny a way to avoid penalties through a new offer. This offer would give the insurers the opportunity to pay all outstanding back taxes – in addition to interest – in order to close their cases and face no further penalties. The Internal Revenue Service is working to help to correct the tax avoidance and prevent it in the future. The small…

Read More

Georgia receives waiver for medical loss ratio provision of the Affordable Care Act

While many provisions of the Affordable Care Act have been submerged in controversy, one provision, in particular, has garnered the ire of the insurance industry. The new federal law requires all health insurers to spend at least 80% of the money the collect from premiums on improving medical care for patients. If insurers cannot meet the standard, they are required to return the money to policyholders. This single provision has major financial implications on the nation’s insurers, both big and small. Insurers have been petitioning state lawmakers to obtain a…

Read More

Health insurance price increases may slow next year, shrinking profits for smaller insurers

An analyst at Wedbush has released estimates that have shown that in 2012, there may be a slowing in the rising cost of health insurance, but that this may cause smaller insurers that concentrate on commercial coverage to achieve smaller profit margins. The Wedbush analyst, Sarah James, released a research note that showed that employer and insurer surveys have been indicating that price increases will be slower next year than they were in 2011, as a result of some of the health care reform elements having been implemented. Though this…

Read More