Health Insurance Provider Fee: 2017 Moratorium, 2019 Suspension and Repeal After the 2020 Fee Year – Questions and Answers

 

Q1: Does repeal of the fee for calendar years beginning after December 31, 2020 (the “Further Consolidated Appropriations Act, 2020, Division N, Subtitle E § 502”), affect the 2020 fee year?

A1: No. Form 8963 for the 2020 fee year is due by April 15, 2020. The applicable amount for fee year 2020 is $15, 522,820,037

Q2: Under the 2019 suspension, was there a health insurance provider fee in 2019?

A2: No. There was no fee in 2019. There is a fee in 2020. There is no fee after the 2020 fee year (2021 calendar year).

Q3: Did the 2017 moratorium or 2019 suspension affect the 2018 or 2020 fee years? Does the repeal after the 2020 fee year affect the 2020 fee year?

A3:  No. Form 8963 for the 2018 fee year was due by April 17, 2018. The 2018 applicable amount was $14.3 billion, and any required payment was due on September 30, 2018. Form 8963 for the 2020 fee year is due by April 15, 2020. The applicable amount for fee year 2020 is $15,522,820,037, and any required payment is due on September 30, 2020.

Q4: Did the 2019 suspension apply to fee year 2019 or data year 2019? In other words, did the suspension apply to (1) the fee paid in 2019 based on the 2018 data year or (2) to the fee paid in 2020 based on the 2019 data year?

A4: The 2019 suspension applied to fee year 2019. Therefore, no fee was due in fee year 2019 based on the 2018 data year. The fee to be paid in the 2020 fee year is based on the 2019 data year

Q5: How do the 2017 moratorium, the 2019 suspension and the repeal after the 2020 fee year affect the filing obligation or fee amount for the 2018  or 2020 fee years?

A5: The 2017 moratorium, the 2019 suspension and the repeal after the 2020 fee year have no effect on the filing obligation or fee amount for the 2018 or 2020 fee years.  The “applicable amount” for fee year 2018 remained at $14.3 billion. The applicable amount for fee year 2020 is $15,522,820,037 (see Treas. Reg. § 57.4(a)(3) and Notice 2019-50).