ITB 11-02: IRS provides guidance on changes in method of accounting for organizations to which section 833 applies

In Notice 2011-04, the IRS provides follow up guidance to Notice 2010-79, and the new Notice provides procedures for Blue Cross and Blue Shield organizations to obtain automatic consent to change its method of accounting for unearned premiums by reason of Section 833(c)(5). Section 833(c)(5) pertains to existing Blue Cross and Blue Shield organizations that were unable to meet the medical loss ratio (MLR) requirements.