Annual Fee on Health Insurance Providers for 2020
Section 9010 of the Affordable Care Act (ACA) imposes an annual fee on covered entities engaged in the business of providing health insurance for U.S. health risks. The fee, also known as the applicable amount , is a fixed 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. The fee, which was suspended by P.L. 115-120 for 2019, will resume in 2020 absent legislative action. According to the IRS, the applicable amount for 2020 is $15,522,820,037. This was determined by multiplying the fee for the 2018 base year ($14,300,000,000) by the premium adjustment percentage for 2020 (1.0855118907), rounded to the nearest dollar. Notice 2019-50.
Source :Thomson Reuters