A federal whistleblower complaint filed against Blue Shield of California stated that the insurer didn’t pay approximately $89 million in taxes that it owed under the Affordable Care Act (ACA).

Self-funded employers’ plans were exempted from federal taxes under the ACA. Blue Shield of California offers several hybrid plans, called “flex-funded,” which it funds along with employers. The complaint — made by former Blue Shield of California public policy director Michael Johnson — asserts that such hybrid plans are not exempted from tax.

Johnson pointed out that, in 2016, Blue Shield of California amended its tax filings to adjust its premium intake downward by $3.1 billion. The insurer stated that it did so because the amount reflects service fees that it charges to flex-funded plans, rather than premiums, and are thus exempt from ACA-mandated taxation.

Get the full story here, from the Los Angeles Daily News.