Health Care Reform Website

Health Insurance Providers Fee

Beginning in 2014, the Affordable Care Act imposes a fee on “covered entities” that will be used to help fund the subsidies lower-income individuals receive when purchasing coverage through a public Exchange.In general, “covered entities” include health insurance issuers and exclude employers offering self-insured coverage, governmental entities, certain nonprofit corporations and certain voluntary employees’ beneficiary associations.

Each covered entity will report annually on their net written premiums by April 15th. They will receive from the IRS a statement indicating the fee amount due for the year by August 31st and payment must be made on or before September 30th.

The Consolidated Appropriations Act of 2016 suspended the fee for 2017 but it went back into effect on January 1, 2018. Under the short-term spending bill signed into law on January 22, 2018, the fee is suspended for 2019.

Additional Information

Cadillac Tax and Other ACA Taxed Delayed Under 2018 Spending Bill
     On January 22, 2018, Congress passed and President Trump signed into law a short-term spending bill to fund the federal government through February 8, 2018. As part of the spending bill, three Affordable Care Act (ACA) taxes have been delayed or suspended.

New Spending Bill Means Changes to ACA Tax Provisions
     On December 18, 2015, Congress approved and President Obama signed a $1.1 trillion spending measure for the federal government that includes significant changes to several tax provisions in the ACA.