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Dental and vision insurance - premium tax

Guest bbruno

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Guest bbruno

My question, hopefully appropriate here is if there is a potential for premium tax to be attached to a benefits plan (dental and vision) where the plan is using a hybrid form of insurance. That is, is a governmental entity contracts with the carrier(s) for admin (claims processing, network, actuarial svs and banking services [banking services meaning that the money is held with the carrier, interest credit is paid on the money by carrier], and the carrier is contracted as the stop loss insurer, but the primary potential funding and risk is held by the governmental entity, (this includes including reserve and IBNR risk). My general understanding is that governmental plans in general are shielded from taxation (loosely put). I'm trying to clarify if this there is a premium tax impact (in general) for 1) the type of arrangement described and 2) if there is a tax impact, would using a carrier who is a not-for-profit entity. The reason for the hybrids form has to do how the contracting would have to be done. h Any tips, suggests or other direction would be greatly appreciated :blink:

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