12 Nov IRS Announces Health Insurance Providers Fee to Resume in 2020
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IRS Announces Health Insurance Providers Fee to Resume in 2020
The Internal Revenue Services (IRS) recently announced that the health insurance providers fee will resume in 2020. The fee is imposed by the Patient Protection and Affordable Care Act (ACA) and was suspended for 2019. Read the following blog post to learn more.
As background, the Patient Protection and Affordable Care Act (ACA) imposes a fee on each covered entity (for example, health insurers or a non-fully insured MEWA) engaged in the business of providing health insurance for United States health risks.
There was a moratorium on the fee for 2017 and there is a suspension on the fee for 2019. Under IRS Notice 2019-50, absent legislative action, the fee will resume for 2020. According to an estimate by the American Academy of Actuaries, the fee will increase premiums by one to three percent in 2020.
SOURCE: Hsu, K. (29 October 2019) “IRS Announces Health Insurance Providers Fee to Resume in 2020” (Web Blog Post). Retrieved from https://blog.ubabenefits.com/irs-announces-health-insurance-providers-fee-to-resume-in-2020