§4375 Health insurance

Summary

Requires a fee on each specified health insurance policy for policy years ending after September 30, 2012. The fee is $2 multiplied by the average number of lives covered under the policy (it is $1 for policy years that end during fiscal year 2013). The company that issues the policy must pay the fee. For policy years ending in fiscal years that begin after September 30, 2014, the dollar amount is increased each year by the percent increase in the projected per‑person National Health Expenditures published by the Secretary before that fiscal year. The fee does not apply to policy years ending after September 30, 2029. Defined terms: "specified health insurance policy" — most accident or health insurance policies for people living in the United States, including group plans, but not policies that mostly cover excepted benefits (see section 9832(c)). "Arrangement treated as a specified health insurance policy" — any setup where fixed payments or premiums are taken to provide or arrange health coverage for U.S. residents; the person taking those payments is treated as the issuer.