Republicans often accuse the IRS of being subservient to President Obama’s political goals, but last week the agency made a move that could amount to a serious blow to the administration’s health care policies.

The IRS denied a bid for tax-exempt status from an accountable care organization (ACO), an independent network of doctors that coordinated with private insurers or Medicare to provide care for beneficiaries.

ACOs have been promoted by the Obama administration as a way to improve quality and reduce costs by incentivizing doctors to take a more holistic approach of care to their patients. The doctors who form the networks have financial incentives to keep costs down by favoring preventative care over expensive tests and treatments.

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