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Repeal of health insurance provider fee

Authored by Joe Vermeulen

This past December, Congress attached numerous tax provisions to a series of the omnibus government funding bills including  the repeal of the health insurance provider fee (the “9010 fee”) for years after Dec. 31, 2020. This legislation was subsequently approved by the president. Initially imposed by the Affordable Care Act, the 9010 fee is a nondeductible fee for each covered entity engaged in the business of providing health insurance for United States health risks. The fee, which began Jan. 1, 2014, is an aggregate flat fee allocated based on an insurance company’s net written premiums compared to the total net written premiums of all covered health insurance companies. The aggregate fee for 2020 is $15,522,820,037.

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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.

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