Rep. Jim McDermott, D-Wash., is urging the Treasury and the Internal Revenue Service to update 16-year-old safe harbor provisions for tax-exempt health care bonds so that they will not conflict with health care reform.

In a July 1 letter to Treasury assistant secretary for tax policy Mark Mazur, McDermott said that some of the safe harbor provisions inhibit “the ability of certain new payment models, such as accountable care organizations [ACOs], to flourish.”

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