-
Who has to pay this assessment?
A. Any company that writes health insurance in Oregon
will have to file on our online reporting system. Companies that are authorized for health
but have not written any premiums during the quarter can request an exemption. Companies
that write health premiums will be subject to the assessment on those lines of business considered
taxable. See Bulletin
INS 2009-9 for more detail.
-
Are self-insured public-employer health plans subject to the 1 percent tax?
A. A PEBB self-insured plan would be subject to the tax, but no others. Section 3
of HB 2116 refers specifically and exclusively to PEBB. The reference in Section 48(6)(g)
does not expand the tax to other self-insured public-employer plans.
-
Are stop-loss policies as defined in ORS 742.065 subject to the 1 percent
tax?
A. No, by law they are excluded. When filing the tax return for this tax, these premiums
will be subtracted. This may involve additional record-keeping on the insurer's part to be
able to segregate these premiums.
-
Are self-insured public employer plans authorized to pass along any of the 1 percent
surcharge to their participant/employees?
A. No. The only self-insured public employer plan subject to the tax is PEBB. HB 2116 specifically
says that the assessment will be considered part of PEBB's administrative expenses, which
are not passed along to participants/employees.
-
Are multiple-employer welfare (MEWA) arrangements pursuant to ORS 750.329 subject to
the 1 percent health premium tax?
A. No. HB 2116 does not amend ORS 750.333 to make the assessment applicable to MEWAs.
-
Can companies that write only the excluded premiums (vision only, dental only, long-term
care, Medicare Advantage plans, federal employees' health premium, stop-loss policies, disability)
raise those rates by 1 percent?
A. No, insurers can increase rates without applying to the division for a rate increase
ONLY on those lines of business that are assessed the 1 percent health premium tax. Companies
that sell both the included type of premiums and the excluded lines of business are allowed
to raise their rates by up to 1 percent only on those lines of business that are assessed
the 1 percent health premium tax.
-
Can you tell me if the premium tax increase effective 10/1/09 applies to excess risk
coverage purchased by self insured plans?
A. Maybe. Stop loss premiums meeting the definition in ORS 742.065 are not included in this
health premium assessment. However, if the stop loss coverage does not meet that definition
it would be subject to the assessment. Check with your insurer.
-
Can you tell me if employers will be getting a 1 percent increase on October 1, 2009,
or does this mean renewals on or after October 1, 2009?
A. Some employers that already received rate increases may see an additional 1 percent increase
on or after Oct. 1, 2009, with a notice explaining the tax. Employers that renew in the future
may not receive a notice of the tax; instead, it will be incorporated into any broader change
in rates that are approved by the Insurance Division. Check with your insurer regarding your
rate.
-
Has DCBS issued any rules or bulletins about this new tax?
A. Yes, Oregon Insurance Division Bulletin Ins 2009-9
is available at: insurance.oregon.gov.
The bulletin states that the Department of Consumer and Business Services (DCBS) will conduct
emergency rulemaking to codify certain sections of this bulletin.
-
If covering Oregon residents, will out of state carriers with policies not issued in
Oregon be required to pay the 1 percent assessment? How will the carriers be notified? And
how will this be enforced?
A. Insurers that insure Oregon residents are required
to pay the 1 percent tax. HB 2116 says that "gross amount of premiums earned from
1). Policies insuring Oregon residents and 2). Policies delivered or issued for delivery
in Oregon" will be taxed. We plan to collect the assessment from any insurer that
allocates health premium to Oregon. You should contact your insurer if you have questions
about this assessment. If you represent an insurer, please see the contacts at the end of
these questions.
-
Will the assessment apply to self-funded public entity plans, such as counties and cities?
If so, how will the "premium" amount be determined?
A. No. The only self-funded entity that is subject to the new tax is PEBB (Public Employees
Benefit Board).
-
Will tax forms be available on the division's web site?
A. No, we are developing an online filing system that insurers can use with a password.
We expect the system to be available by January 1, 2010. A letter to insurers will go out
in early December with the information each insurer needs to use the system.
-
Is credit insurance excluded from the health premium assessment?
A. Maybe. It depends on the type of credit insurance. Credit-health (including credit- accident
and health) and credit-disability are excluded from the health premium assessment since they
are included in disability. Other types of credit insurance may be included in the taxable
premiums for this assessment.
-
Who should we contact if we have further questions?
Insurers please contact:
Lynette Hadley 503-947-7046; lynette.m.hadley@state.or.us
Shannon O'Shea 503-947-7218; shannon.oshea@state.or.us
Policy questions and clarification please contact:
Anthony Behrens 503-947-7129 anthony.a.behrens@state.or.us
Consumers, employers, agents and others please contact:
Consumer Advocacy 503-947-7984 or 888-877-4894.
