IRS Issues Final Rule on PPACA Health Insurance Provider Fee

The Internal Revenue Service has issued final regulations related to the excise tax on health insurance companies set to kick in under the Patient Protection and Affordable Care Act in 2014.

The tax or health insurance provider fee applies to entities with aggregate net premiums of more than $25 million starting next year. Government entities, self-insured businesses and nonprofit organizations that receive at least 80 percent of their revenue from government programs are exempt from paying the fee, according to the final regulations.

Lawmakers and insurance industry representatives have urged federal officials to delay the fee, saying health insurance markets need time to stabilize before the tax takes effect. Earlier this year, Reps. Charles Boustany, MD, (R-La.) and Amy Bera (D-Calif.) introduced legislation to delay the fee's implementation by two years. America's Health Insurance Plans CEO Karen Ignagni has also called for a two-year delay, saying the tax is "one of the largest and more important barriers" to healthcare affordability.

More Articles on PPACA Implementation:
Bipartisan Bill Would Delay PPACA Tax for Health Insurers  
AHIP Leader Advocates for Delaying PPACA Health Insurance Tax  
Fitch: Political Bickering Over PPACA Only Hurts Healthcare Industry 

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