United States

Reminder: Health plan reinsurance fee reporting due November 15

TAX BLOG  | 


The Affordable Care Act added a reinsurance fee on major medical plans for 2014, 2015 and 2016. For 2016, the fee is $27 per employee, spouse and dependent enrolled in the plan.

The plan sponsor must pay the fee if the health plan is self-insured whereas the insurance company pays the fee for insured plans. The fee applies to all types of employers including tax-exempt organizations and governmental entities. Most major medical plans are subject to the fee regardless of the number of plan participants.

The 2016 fee is based on the average number of covered lives in the plan during the nine-month period of Jan. 1 through Sept. 30, 2016, regardless of the actual plan year. Employers must report this enrollment count to the U.S. Department of Health and Human Services by Nov. 15, 2016, and pay the fee by Jan. 17, 2017, using an on-line system called Pay.gov.

For more information, see our tax alert: Transitional reinsurance fee under the Affordable Care Act.


Jill Harris

Senior Director

Jill helps businesses with planning and compliance for employee welfare and retirement plans. She can be reached at jill.harris@rsmus.com.

Areas of focus: Washington National TaxAffordable Care Act