Revenue Ruling 2013-27 holds that a covered entity must include in gross income amounts it collects from policyholders to offset the cost of the annual fee imposed under section 9010 of the Affordable Care Act.   A covered entity generally is an entity engaged in the business of providing health insurance that provides health insurance for a United States health risk.

Notice 2013-76 provides guidance on the health insurance providers fee related to (1) the time and manner for submitting Form 8963, “Report of Health Insurance Provider Information,” (2) the time and manner for notifying covered entities of their preliminary fee calculation, (3) the time and manner for submitting a corrected Form 8963 for the error correction process, and (4) the time for notifying covered entities of their final fee calculation.