Health Insurer Provider’s Fee 2017 Moratorium

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This alert will serve as a reminder that, pursuant to The Consolidated Appropriations Act of 2016, Title II, §201 entitled “Moratorium on Annual Fee in Health Insurance Providers”, the collection of the health insurance provider fee for the 2017 calendar year has been suspended.  There is no requirement for covered entities to file a Form 8963, Report of Health Insurance Provider Information, in April, 2017 based on 2016 data.

As defined by the Internal Revenue Service, a covered entity is generally any entity with net premiums written for health insurance for United States health risks during the fee year that is (1) a health insurance issuer within the meaning of Internal Revenue Code (“IRC”) §9832(b)(2); (2) a health maintenance organization within the meaning of IRC §9832(b)(3); (3) an insurance company that is subject to tax under subchapter L, Part I or II, or that would be subject to tax under subchapter L, Part I or II, but for the entity being exempt from tax under section 501(a); (4) an insurer that provides health insurance under Medicare Advantage, Medicare Part D, or Medicaid; or (5) a non-fully insured multiple employer welfare arrangement. 

However, a covered entity does not include a self-insured employer; a governmental entity; certain nonprofit corporations and certain voluntary employees’ beneficiary associations.

Please note that the suspension of the fee is for the 2017 calendar year only.  As it currently stands, the filing of a Form 8963 and payment of the fee by a covered entity will be required in April, 2018 reporting data related to the 2017 year.

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