One health insurance company says Tesla deal imperils jobs, another sees no issue

By Kyle Roerink

Wednesday, Sept. 10, 2014 | 10:35 p.m.

Nevada health insurance companies are split on how the Tesla tax breaks would affect their business.

To help fund the Tesla proposal, Gov. Brian Sandoval proposed scaling back a tax credit offered to some insurance companies with home offices in Nevada.

The state created the tax credit to lure insurance companies to move jobs to Nevada, much like the goal of the Tesla deal. The state levies a 3.5 percent tax on insurance premium payments. The credit cuts that rate in half to 1.75 percent.

In 2013, Nevada had about 2,000 insurance companies and 12 of them received a tax credit. The state provided $27 million in tax credits last year.

Under the Tesla bill, the tax credit would be reduced to $5 million that would be divided among insurance companies annually for five years.

The cuts to the tax credit program would take effect in 2016.

United HealthCare, which operates Health Plan of Nevada, says that while the Tesla bill aims to create jobs it could inadvertently kill them. United HealthCare took 80 percent of the state tax credits in 2013.

“This tax credit, as originally designed, was intended to keep jobs in Nevada and create a high-quality, efficient health care marketplace. The governor’s proposal instead will increase health care costs and imperils existing jobs in the state,” said company spokeswoman Cheryl Randolph.

Anthem Blue Cross and Blue Shield had a lobbyist at the session but didn’t make the tax credit an issue.

“We are not concerned about this issue," Anthem spokeswoman Joyzelle Davis said. "We understand the governor needs to make difficult decisions about how to grow the economy in Nevada."

In testimony to the Assembly, Steve Hill, executive director of the Governor's Office of Economic Development, said the tax credits would be used more efficiently with Tesla than with insurance companies.