The Washington Report
September 4, 2019
Congress returned from its summer recess this week. The House and Senate will begin working on a funding bill to avoid a government shutdown before the end of the month.
IRS Announces ACA Section 9010 Health Insurance Providers Fee
On September 3, 2019, the Internal Revenue Service (IRS) released Notice 2019-50. The Notice provides the amount of the Affordable Care Act (ACA) Section 9010 health insurance providers fee in the 2020 fee year. Section 9010 of the ACA imposes an annual fee on covered entities engaged in the business of providing health insurance for United States health risks. The fee is a fixed amount (Applicable Amount) allocated among all covered entities in proportion to their relative market share as determined by each entity’s net premiums written for the data year, which is the year immediately preceding the year in which the fee is paid (the year in which the fee is paid is the fee year). Section 4003 of Division D—The Suspension of Certain Health-Related Taxes enacted on January 22, 2018, Public Law 115-120 (132 Stat. 38), suspended the fee for 2019. Absent legislative action, the fee will resume in 2020. The 2020 Applicable Amount that insurers will collectively pay is $15.5 billion.
IRS Notice 2019-50 is available here.
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