Insights

Moratorium on Health Insurance Tax Impacts Carrier Rates


On Feb. 21, 2018, the Connecticut Insurance Department published Bulletin HC-119, which relates to the 2019 moratorium on the health insurance provider fee (also known as the health insurance tax, or HIT). As background, the fee was placed on a moratorium for 2019 as part of 2017 tax reform. According to the bulletin, insurance carriers in Connecticut have included a portion of the 2019 fee as part of the 2018 premium charged to employer groups with plan years beginning between Jan. 1, 2018, and Dec. 1, 2018. The bulletin directs such carriers to refile their rates for the second, third and fourth quarters of 2018 to remove the fee for the portion of the plan year in 2019. The bulletin also directs carriers to provide a credit or refund of the 2019 fee to the employer group in the 2018 plan year.

While the bulletin is directed at carriers, employers with fully insured plans in Connecticut may want to reach out to their carriers for additional information regarding a potential credit or refund relating to the fee’s moratorium in 2019.

Bulletin HC-119 »