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Federal Compensation: Premium Taxes Paid by the Health Benefits Program

GGD-89-102 Published: Aug 08, 1989. Publicly Released: Aug 08, 1989.
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Highlights

Pursuant to a congressional request, GAO provided information on the amount of premium taxes that underwriters participating in the Federal Employees Health Benefits Program paid to states and other government entities.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
If Congress wants to make the treatment of premium taxes uniform in the health and life insurance programs, it may wish to consider amending the Federal Employees' Health Benefits Act to expressly prohibit states, the District of Columbia, the Commonwealth of Puerto Rico, or other political subdivisions from imposing or collecting taxes, fees, or other monetary payments based on the premiums paid under the Federal Employees Health Benefits Program.
Closed – Implemented
In P.L. 101-508, Congress exempted premiums from states' taxation.

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Employee medical benefitsFederal employeesstate relationsHealth insuranceHealth insurance cost controlInsurance premiumsInsurance regulationState taxesTaxesHealth benefits