- 41 - substantial part of its activities consists of providing commercial type insurance. 1. Whether Petitioner Satisfies The Community Benefit Test The community benefit test requires consideration of a variety of factors that indicate whether an organization is involved in the charitable activity of promoting health on a communitywide basis. Considering all the facts and circumstances surrounding petitioner’s operations, we conclude that petitioner did not provide a meaningful community benefit, and, therefore, petitioner does not qualify for exemption pursuant to section 501(a) as an organization described in section 501(c)(3). Much like the HMOs under consideration in Sound Health Association v. Commissioner, supra, and Geisinger Health Plan, supra, petitioner offered its health plans to a broad cross- section of the community including individuals, the employees of both large and small employers, and individuals eligible for Medicaid benefits. Petitioner offered several different health plans encompassing a range of health services at varying prices. There is no indication in the record that petitioner rejected any potential enrollees, although it was petitioner’s practice to deny an enrollee coverage with respect to certain preexisting conditions for the first 12 months of enrollment.Page: Previous 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Next
Last modified: May 25, 2011