### Question
How is the term existing Blue Cross or Blue Shield organization defined?


### Answer
The term **existing Blue Cross or Blue Shield organization** is defined in *26 U.S.C. § 833* as the following:

> any Blue Cross or Blue Shield organization if—



(A) such organization was in existence on August 16, 1986,



(B) such organization is determined to be exempt from tax for its last taxable year beginning before January 1, 1987, and



(C) no material change has occurred in the operations of such organization or in its structure after August 16, 1986, and before the close of the taxable year

#### Citation:
  - *26 U.S.C. § 833*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter L-Insurance Companies > PART II-OTHER INSURANCE COMPANIES**

