HCHP Exemption

The city of Cambridge owes the Harvard Community Health Plan $600,000 in return for taxes because of the Massachusetts Supreme Judicial Court's recent decision to uphold tax exemption for the plan's $700,000 property.

The Cambridge Board of Assesors has disputed the plan's tax-exempt status since 1974, when the Health Plan first opened its Cambridge branch, but the plan has continued to pay taxes until now.

The Health Plan is a non-profit organization, not associated with the University, which provides health care to a broad spectrum of subscribers throughout the Boston area.

In a unanimous decision, the court ruled last Thursday that organizations providing health care to a large subscriber group meet the "charitable purpose" standard for exemption from local property taxes.

"There's no doubt that the Harvard Community Health Plan serves a good purpose, but the city also has services to perform," Kevin P. McDevitt, member of the Board of Assessors, said yesterday.

McDevitt added that while the Board of Assessors will honor the decision of the courts, it feels that the company can easily afford to pay taxes. "It's an admirable business, but it's also profitable," he said.

"The city is overburdened with organizations seeking tax exemption," McDevitt said.

Claire McGuire, director of the Bureau of General Counsel for the Health Plan, said the court's decision was fair. "It's not a revolutionary decision," she said.

"We don't give away our services anymore than Harvard gives away its services, but we are still a charitable organization," McGuire said.