Sec. 18. Imposition of annual fee on health insurance providers

335 words·~2 min read·/bill/113/s/627/is/section-18

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Each covered entity engaged in the business of providing health insurance shall pay to the Secretary not later than the annual payment date of each calendar year beginning after 2014 a fee in an amount determined under subsection (b). For purposes of this section, the term annual payment date means, with respect to any calendar year, a date determined by the Secretary, which in no event, may be later than September 30 of such calendar year. With respect to each covered entity, the fee under this section for any calendar year shall be equal to the amount determined under section 17(a)(2), multiplied by the ratio of the covered entity’s net premiums written with respect to health insurance for any United States health risk taken into account under subsection

(c)during the preceding calendar year, to— the sum of net premiums for all covered entities; and all Federal outlays on health insurance or reimbursement of health care costs, excluding the costs of long term care. For purposes of paragraph (b), the net premiums written with respect to health insurance for any United States health risk that are taken into account during any calendar year with respect to any covered entity shall be determined as follows: With respect to a covered entity’s net premiums written during the calendar year that are not more than $25,000,000, the percentage of net premiums written that are taken into account is 0 percent. With respect to a covered entity’s net premiums written during the calendar year that are more than $25,000,000 but less than $50,000,000, the percentage of net premiums written that are taken into account is 50 percent. With respect to a covered entity’s net premiums written during the calendar year that are $50,000,000 or more, the percentage of net premiums written that are taken into account is 100 percent. For purposes of this section, the term covered entity means any entity which provides health insurance for any United States health risk. Such term does not include any governmental entity.