The Internal Revenue Service has announced a sudden interpretation change that could help cut some quick-moving health insurers’ Patient Protection and Affordable Care Act (PPACA) health insurance provider fee payments.
The IRS says a “controlled group” of insurers can reduce its PPACA health insurance provider fee tab by leaving any members that are not “covered entities” out of net premium calculations. The group can get the fee reduction only if it faxes a corrected Form 8963 health insurance provider information report to the IRS at (877)-797-0235 by Monday.
“The IRS cannot process a Form 8963 received after this date,” officials warn in the IRS Notice 2014-47.
PPACA drafters created the PPACA Section 9010 fee to raise revenue, and to give the U.S. Treasury of what the drafters thought would be extra premium revenue flowing to health insurers as a result of PPACA provisions that impose penalties on some people who fail to have what PPACA defines as a minimum level of health coverage.