Final regulations - Health insurance providers fee 

November 26:  The Treasury Department and IRS this afternoon released for publication in the Federal Register final regulations (T.D. 9643) concerning the annual fee imposed on covered entities engaged in the business of providing health insurance for U.S. health risks.

The annual fee (considered an excise tax) is referred to as the fee imposed by section 9010 of the Patient Protection and Affordable Care Act.

  • Today’s 18-page final regulations [PDF 265 KB] follow the March 2013 release of proposed regulations and Treasury and IRS review of the “over 80 written comments” in response to the proposed regulations.
  • Read an initial report on the proposed regulations: TaxNewsFlash-United States: Proposed regulations - Health insurance providers fee
  • The final regulations are scheduled to be published in the Federal Register on Friday, November 29, 2013.

In light of today’s late release of these regulations, the purpose of this report is simply to provide text of the regulations.

Related IRS releases

The IRS also released a revenue ruling and notice relating to the annual health insurance fee (text is provided below).

  • Rev. Rul. 2013-27 [PDF 14 KB] provides that a covered entity must include in gross income amounts it collects from policyholders to offset the cost of the annual fee imposed under section 9010 of the Affordable Care Act. For these purposes, a covered entity generally is an entity engaged in the business of providing health insurance that provides health insurance for a United States health risk.
  • Notice 2013-76 [PDF 21 KB] provides guidance on the health insurance providers fee related to (1) the time and manner for submitting Form 8963, Report of Health Insurance Provider Information, (2) the time and manner for notifying covered entities of their preliminary fee calculation, (3) the time and manner for submitting a corrected Form 8963 for the error correction process, and (4) the time for notifying covered entities of their final fee calculation.

Rev. Rul. 2013-27 and Notice 2013-76 will appear in Internal Revenue Bulletin 2013-51, dated December 16, 2013.

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