Tax Levy and Garnishment

When Blue Cross Blue Shield of Nebraska (BCBSNE) receives a tax levy or garnishment for a participating provider we are required to comply with the levy or garnishment request.

Once the levy/garnishment is received, if the provider’s method of payment is by EFT, the payment method will need to be changed to paper check.  BCBSNE will hold all payments scheduled to pay to the provider and will send these payments (with required documentation) to the IRS/State of Nebraska. This process will continue until we receive an updated tax levy or documentation releasing or completing the tax levy from the IRS or State of Nebraska. 

The provider receives documentation showing that we made payment to the IRS/State of Nebraska due to a levy. We will send a copy of the voided check, a copy of the check remitted to the IRS/State of Nebraska, a copy of the EOB, a copy of Part 2 of the Notice of Levy and a letter stating payment was issued but was remitted to the IRS/State of Nebraska due to a tax levy. 

We keep copies of all documents that are mailed for future reference.