Pension & Benefits News Health insurance providers fee was suspended for 2019, not 2020: IRS
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Wednesday, December 18, 2019

Health insurance providers fee was suspended for 2019, not 2020: IRS

By Pension and Benefits Editorial Staff

Patient Protection and Affordable Care Act (ACA) Sec. 9010 imposes a fee on health insurance providers. There was a moratorium on the fee for 2017 and there was a suspension on the fee for 2019. However, the IRS has reminded health insurance providers that the suspension was for 2019 only, not 2020. The due date for Form 8963, Report of Health Insurance Provider Information for Fee Year 2020, is April 15, 2020.

The IRS noted that the “applicable amount” for fee year 2018 remained at $14.3 billion. For 2019 and thereafter, the “applicable amount” is the “applicable amount in the preceding fee year increased by the rate of premium growth (within the meaning of section 36B(b)(3)(A)(ii)).” The applicable amount for fee year 2020 is $15,522,820,037.

SOURCE: https://www.irs.gov/businesses/corporations/affordable-care-act-provision-9010

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