Blue Cross of California, a WellPoint Health Networks subsidiary, underpaid state taxes for eight years, the Foundation for Taxpayer & Consumer Rights alleged in a lawsuit filed Monday in Los Angeles County Superior Court. The suit asks a judge to force California's controller and Board of Equalization to collect $300 million to $500 million in back taxes on Blue Cross' PPO enrollees, said Jamie Court, president of the foundation. Court described the range as "conservative." At deadline, calls to the Blues plan had not been returned. According to the lawsuit, the insurer wrongly paid a franchise tax on net profits -- rather than a gross premiums tax -- for PPO products. -- by Melanie Evans
WellPoint unit allegedly owes Calif. lots of taxes
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