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BUSINESS Service Tax

Blue Cross Positively Affected By Tax Cut

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The leading health insurance company in North Carolina said that there will be positive impacts brought by the latest federal tax cut which was imposed this year. For the company, it means that there will be no rate increase in the near future but rather they are giving the money to charities amounting $40 million. A bonus of $1,000 will also be given to employees. This is a motivating force for new businesses to apply for a North Carolina ID in order to enjoy the benefits.

According to Blue Cross and Blue Shield of North Carolina, they are going to send millions intended for health initiatives this 2018 and 4,700 of their employees will be receiving bonuses. The company explained that increase in premiums is to be expected but the amount is still going to be lower than the original increase due to new policies for next year.

Majority of the rates for this year have already been set before the passing of the tax cuts in the end of 2017. There are positive impacts to be expected such as the lower increase in the cost their customers have to pay especially those who are planning to renew their policies in this coming October. This is based on the statement made by Austin Vevurka, the spokesman for Blue Cross.

The company did not offer to reveal their approximate savings with regards to their tax bill. At the same time, they did not reveal the reason why they chose to use the money in funding new technology, bonuses for their employees and measures for community health instead of delaying the increase of the premium at the end of 2018.

Duke Energy Corp which is based in Charlotte said that they are expecting to save around $276 million from their operations in North Carolina but they did not go into details as to how much they are going to give back to their customers.

The CEO of the health insurance company, Dr. Patrick Conway, said that they are hoping to invest more in the communities within North Carolina and this is why they had apply for a North Carolina Tax ID in order to help the state’s current economy.