Cost Free Treatment Under Irc Section 368 Essay

* Under ASC 805-740, a change in an acquirer’s valuation allowance for a deferred tax asset that results from a change in the acquirer’s circumstances caused by a business combination…

Unit 2 AssignmentKelley WhitcombKaplan UniversityHI215-01: Reimbursement MethodologiesProfessor Kathleen SobelJuly 20, 2015Medicaid is one of the biggest insurance plans you can get in any state. In the state of Indiana, it is based off of your income. There is a certain amount (income) you have to make to determine if you will receive Medicaid or Healthy Indiana Plan (HIP). HIP is still a form of Medicaid, but you would have to pay monthly cost for it and have certain set of co-pays for certain services that is needed. HIP Plus is the recommended plan for members as it provides health coverage for a low, predictable monthly cost. HIP Plus also covers dental and vision services. If you do not pay your monthly payment you can be removed from

• Transaction structures—the takeover could involve a cash offer, a share offer, an asset swap or a combination of these methods. Need to consider legal, taxation and accounting issues.

We as Coders and Billers should understand the interaction of the CPT procedural codes and the ICD diagnostic codes. The providers receive payment for their service, whether it is an office visit or an operation in the hospital. All services need to be coded for proper payment.

Section 1.368-2(c) of the Income Tax Regulations provides: In order to qualify as a "reorganization" under section 368(a)(1)(B), the acquisition by the acquiring corporation of stock of another corporation must be in exchange solely for all or a part of the voting stock

Section 351 of the Internal Revenue code allows a taxpayer to obtain non-recognition of gain or loss when property is transferred solely in exchange for stocks and immediately after the transfer, the transferor or transferors are in control of the corporation. This does not include non-qualified stock as provided under §351(g), however. As described above, each party transferred to the corporation qualifying tangible assets that are established as “property” for rules governing transfers to corporations. Moreover, directly after the exchange both shareholders obtained control of the corporation by satisfying the requirement of I.R.C. §368(c). Section 368 (c), defines control as holding at least 80% of the total combined voting power of all

Gregory argued that under section 112 of the Revenue Act of 1928 26 USCA 2112, the transfer of shares was a reorganization and since the transfer was a reorganization, she claimed that her gain should not be recognized because the shares were distributed in pursuance of a plan reorganization. Per section 112, reorganizations are not taxed.

Corporate reorganization is definitely an available option. The company should be structured as a parent-subsidiary controlled group. The restructuring should be performed in conformance to any and all tax-saving codes and provisions.

Section 351(c)(2) allows shareholders to dispose of all or part of the transfers stock without preventing the corporations Section 351 transaction from satisfying the “ control immediate after” requirement (4). Section 351(d) states that there are times when services, certain indebtedness, and accrued interest not treated as property as per James v. Commissioner, 53 T.C. 63 (1969); cf. Hospital Corporation of America v. Commissioner, 81 T.C. 520

According to Squires and Chloe, the United States of America is considered as the greatest country in the world, with the largest economy, military powers, freedom of religion and speech, and one of the most successful democrats (2). However, the United States in the only western modernized nation that does not offer free healthcare services to all its citizens. Apparently, the costs of the healthcare services to the uninsured individuals in the US are prohibitive, where the insurance companies are interested in making higher profit margins than providing adequate health care to the insured (Squires and Chloe 4). These conditions are unexpectable and incompatible with the United States

First of all let us understand the concept of third party payer. Third-party payers are the insurers that reimburse health services organizations and hence are the major source of revenues for most providers. large proportion of provider revenues does not come directly from patients (the users of healthcare services) but from insurers, known collectively as third-party payers. It include private insurers, such as Blue Cross and Blue Shield, and public (government) insurers, such as Medicare and Medicaid. Third-party payers use several reimbursement methods to pay providers, depending on the specific payer (e.g., the Blues versus Medicare) and the type of service rendered (e.g., inpatient versus outpatient).

The debate of cost verse care in the United States (U.S.) health care system is a conversation that has to continue. The stakeholders and policy makers should continuoulsy work to adjust cost based on a compassionate care model to bring the highest quality of care to U.S. patients. Continual adjustments are needed at all levels of our health care system to sustain care coordination. The practical health care model can guide the cost side while a compassionate care model has to be used to counter. Both sides can join to structure a functional cost effective healthcare system. The three most important aspects to understand when making healthcare decisions in the U.S. are economics, research, and ethics.

The corporate reorganization should be structured as a divisive “D” reorganization and the restructuring process should conform to section 355 of the tax law in order to minimize the tax consequences of the reorganization.

The readings this week are of particular interest to me due to our own increased readmission rates. Insurance companies are being difficult paying for one admission, but then they are followed by a second one, a day, a week, two weeks after discharge and the insurance companies are stating, they won’t pay (this is understandable as we are not doing our jobs if they are coming back after this short period of time).

Firing people does not guarantee that the company will gain more profit if the reorganization is not implemented