Employee Benefit News for School, City and County Employers

ACA Providers Fee to Increase in 2020

Written by Erin Woulfe | Oct 28, 2019 2:50:10 PM

1 minute read

The IRS recently announced that the Affordable Care Act’s health insurance providers fee will increase for 2020. Please note that this fee is not applicable to employers but rather the health insurance providers. This is an annual non-deductible fee generally paid by health insurers and other providers of health coverage. For 2020, the annual health insurance providers fee amount will increase to $15,522,820,037. The fee must be paid annually by September 30.

The fee is only applicable to those health entities who have premium revenue over $25 million. This may include health insurers, health maintenance organizations, and certain insurance companies. This does not include any employers offering a health insurance plan.

For questions, please contact your Employee Benefits Consultant.

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