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Health Insurance Providers Fee

Beginning in 2014, the Affordable Care Act imposed a fee on “covered entities” that was used to help fund the subsidies lower-income individuals receive when purchasing coverage through a public Exchange.

The Consolidated Appropriations Act of 2016 suspended the fee for 2017 but it went back into effect on January 1, 2018. It was suspended again then was finally fully repealed in 2019.

Additional Information

Government Funding Agreement to Fully Repeal Three Taxes Enacted as Part of the Affordable Care Act
     On December 17, 2019, Congress reached a government funding agreement that includes language to fully repeal three taxes enacted as part of the Affordable Care Act (ACA): the Cadillac Tax, the Health Insurance Tax, and the Medical Device Tax.

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.