Until the March enactment of the Patient Protection and Affordable Care Act, health plans could deduct as much as $1 million in salaries paid to company leaders.
The IRS could not touch stock options, deferred compensation and other noncash payments. Now health plans can only deduct the first $500,000 of what they pay executives.
The new rule is expected to raise $651 million in the next 10 years for Medicare.
Read the American Medical News report on the health insurance company tax rule.
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