The Texas Supreme Court is hearing arguments over whether Blue Cross Blue Shield of Texas should be awarded a $3 million tax refund, according to Law360.
The payer is at odds with Texas Comptroller Glenn Hegar, who is appealing two previous rulings in Blue Cross Blue Shield of Texas' favor.
The insurer is seeking the refund because it believes it should not be subject to a special tax on premiums paid through its stop-loss insurance policies. The policies pertain to self-insured employers and act as a failsafe in case employee health costs surpass a predetermined level.
Mr. Hegar's office argues that the stop-loss insurance policies are a form of health insurance, while the payer claims it is not. Blue Cross Blue Shield said the policy covers the "risk associated with the financial solvency of the employer's self-funded plan, not the employees' health risks," according to Law360.
Litigation is ongoing.