Thrilled With Trump's Tax Law: Blue Cross Blue Shield Parent HCSC Reaps $1.7 Billion Refund

[left-of-center2012]

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.

In another eye-popping insurance company benefit, the Detroit News reported last week that Daniel Loepp, CEO of Blue Cross Blue Shield of Michigan, was paid $19.2 million in total compensation last year, making him one of the highest-paid bosses of any health insurer in America.

https://www.huffpost.com/entry/blue-cross-blue-shield-hcsc-17-billion-tax-refund_n_5c86ff8ae4b08d5b7864b6dd

[mwooldri]

1. The head of the NHS England makes about $300,000 /year.

Head of NHS England....

https://en.m.wikipedia.org/wiki/Simon_Stevens_(NHS_England)

There are 105 NHS trusts in England. The average pay of the chief executive of each in 2003 was £106,513. Adjusted for inflation, it's about £165,428 ($219,300 USD) in 2018.

105 chief executives times £165,400 is about £17.4 million ... $22.9 million USD.

Daniel Loepp's salary of $19.2 million was nearly as much as all the chief executives of NHS England combined.

So why is healthcare in the USA so expensive?

https://www.theguardian.com/society/salarysurvey/table/0,,1044933,00.html

[gtar100]

2. That's all money paid in premiums not paid toward health care.

Money for nothing. Hope you all enjoyed the hours you worked for this and all other healthcare industry profits. There are some very rich people who are glad you did.

[ProfessorGAC]

3. Something Up With Those Numbers

In 2017, their net income was 4%?

Then absent this tax windfall, the margins were 6.6%?

Add in the windfall, the net income goes up to >11%?

And premiums went up?