Date: July 15, 2013

Issue: Corporate Governance

To: Internal Revenue Service

Filing Type: Regulatory

Description: We believe that the Proposed Rule should be tailored in such a way as to minimize the impacts upon health insurance providers and avoid competitive disadvantages and unintended consequences. First, we recommend the Treasury and IRS permit flexibility so that CHIPs may use the methodology employed either for Generally Accepted Accounting Principles (“GAAP”) or Statutory Accounting Principles (“SAP”) audited financial statements. The Chamber also requests that Treasury and IRS clarify in the Final Rule that section 162(m)(6) will no longer apply to a corporation that is not a CHIP after it is no longer part of an aggregate group that includes a CHIP, even with respect to employees who are continuing to receive compensation for services performed during the period the corporation was part of the aggregated group. However, before a final rule is issued, we urge that the Treasury and IRS provide appropriate economic analysis regarding alternative regulatory approaches and of the likely economic impact of the approach taken in order to fulfill their obligations under the Executive Orders 12866 and 13563.

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