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What changes does Senate Bill 1047, passed by the 2010 Legislature, make to the health
premium assessment?
A. Previously, the assessment applied to health plan policies:
a. Insuring Oregon residents; or
b. Delivered or issued for delivery in Oregon.
The new law removes "insuring Oregon residents."
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How does SB 1047 affect the premiums that are taxable?
A. Policies that are delivered or issued for delivery outside of Oregon are not included
in the taxable premiums, even if they may cover Oregon residents. For example, suppose a
CT insurer issues a policy for a large employer in CT. The CT employer may have a couple
of Oregon residents that are employed. The CT insurer would not (under the new law) have
to include these Oregon residents or the CT policy in the taxable premium.
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Is this change retroactive to 4th quarter of 2009?
A. Yes, this change is retroactive to October 1, 2009, and should be used for all future
filings too.
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Should we change our 4th quarter 2009 report if we included premium for Oregon residents
under policies issued for delivery outside Oregon?
A. Yes, if you filed using the "old" language as the definition of taxable premium,
you will need to change the amount of taxable premium for 4th quarter of 2009. Since the
quarter and the filing period are both closed, it is impossible for you to amend your i-Reg
filing report. Please send a spreadsheet showing the amount of premium reported and the amended
amount of premium plus the tax reported and the amended tax. One of the tax analysts will
make the change to your 4th quarter 2009 report and any credit from that change will roll
over to 1st quarter of 2010.
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Are premiums for group hospital (confinement) indemnity policies subject to the health
premium assessment?
A. Yes, they are included.
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Are "accident only" or "accident/sickness" premiums subject to the
health premium assessment?
A. Yes, they are included.
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Are COBRA premiums subject to the health premium assessment?
A. Yes, COBRA premiums are included. Although an insurer can raise the rate to the employer,
the employer can't by federal law raise the rate. Unfortunately, the employer may have to
pay the increased premium without being able to pass it along.
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If a company writes only excludable premiums but they are reported under Group A&H
can they get a year's exemption or do they have to file each quarter?
A. A company can indicate the year's exclusion but we will need to confirm it is appropriate.
If the excludable premiums include stop loss or disability we will not grant an exemption.
Instead the company should list their total premiums and then exclude the disability premium
on the appropriate line.
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Can we get an exemption to filing reports for the health premium assessment if we write
"dental only" and "Medicare"?
A. Yes, you can get an exemption. However, only a one year exemption or one quarter exemptions
are available. You will have to file at least once a year.
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How will the tax be calculated?
A. It is the gross health premium earned (earned premium less returns . . .) minus the excluded
types of premium. This equals the taxable premium. This is then multiplied by 1%. That's
the amount due for the health premium assessment.
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Will there be a floor or minimum tax?
A. No minimum tax (or floor) was included in the bill. We are rounding the tax due according
to mathematical rounding rules. So no one should pay less than $1.
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Can a third party administrator make the filings for an insurance company?
A. No.
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Does the health premium assessment apply only to groups
from 2 to 50?
A. No, this assessment applies to all health premium
except the exclusions listed in the law. The size of a group does not make any difference.
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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.
