United Benefit Advisors Insight and Analysis Blog

IRS Announces Health Insurance Providers Fee to Resume in 2020

By Karen Hsu, Director of Compliance at United Benefit Advisors
  Oct 29, 2019 9:12:00 AM

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.

Affordable Care Act_IRS

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.

Topics: ACA, IRS, ACA fees, compliance recap