Health Insurance Provider Fee: 2017 Moratorium and 2019 Suspension – Questions and Answers

Q1: Under the 2019 suspension, was there a health insurance provider fee in 2019?

A1: No.  There was no fee in 2019.  

Q2: Was Form 8963 required to be filed in the 2019 fee year?

A2: No. No Form 8963 was required to be filed in the 2019 fee year.

Q3: Did the 2017 moratorium or 2019 suspension affect the 2018 or 2020 fee years?

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 and 2019 suspension affect the filing obligation or fee amount for the 2018 or 2020 fee years?

A5: The 2017 moratorium and the 2019 suspension 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).