IHC Care, Inc. - Page 10




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          petitioner’s and Group’s health plans in order to offer potential           
          enrollees a range of health services and pricing options.  Health           
          Plans provided general and administrative services to petitioner            
          and Group including marketing, sales, enrollment, customer                  
          service, claims processing, underwriting and actuarial                      
          services, provider relations and contracting, management                    
          information systems, and general accounting services.                       
               Petitioner operated as an open panel, direct contract model            
          HMO offering health plans known as IHC Care and IHC Senior Care.            
          In short, as petitioner did not itself provide health care                  
          services, it arranged for its enrollees to receive such services            
          by contracting directly with individual physicians (rather than a           
          physician medical group) to provide health services to its                  
          enrollees.                                                                  
          A.  IHC Care Health Plan                                                    
               Petitioner offered its IHC Care health plan solely to                  
          employers with more than 100 employees.6  Petitioner collected              
          premiums from its enrollees and arranged for them to receive                
          comprehensive health care services, including preventive care,              
          outpatient services, inpatient hospital services, emergency                 



          6    Health Plans also offered a plan known as IHC Care.  The               
          principal differences between petitioner’s IHC Care plan and the            
          IHC Care plan offered by Health Plans related to the methodology            
          applied in determining premiums and the enrollees’ degree of                
          access to primary care physicians.  See IHC Health Plans, Inc. v.           
          Commissioner, T.C. Memo. 2001-246.                                          





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Last modified: May 25, 2011