§4375 Health Insurance

Summary

Insurance companies must pay a fee for each health insurance policy year that ends after September 30, 2012. The fee is $2 for each person covered by the policy, except $1 per person for policy years that end during fiscal year 2013. The company that issues the policy must pay the fee. The rule covers most accident and health policies for people living in the United States, including group plans, but not policies that mostly provide “excepted benefits” (defined elsewhere). Prepaid plans where fixed payments are made to provide or arrange coverage are treated like policies, and the person getting those payments is treated like the issuer. After fiscal year 2014, the per-person fee rises each year by the percentage increase in projected per capita National Health Expenditures. The fee does not apply to policy years ending after September 30, 2029.