For Insurers

Health companies - 2014 premium tax filing instructions

New for 2014

The 2014 premium tax form for health companies is completely new. The most significant changes include:

  • Indicating whether you are reporting premiums as written or as earned
  • Reporting of premiums specifically by lines of business
  • An Additional Detail section to report premium detail in addition to that on your annual statement
  • Schedules to determine health care exchange-related taxes

2014 premium tax overpayments, if any, will be applied to prepayments due for 2015. Overpayments in excess of prepayments due will be processed as refunds and sent to the attention of the tax contact we have on file.

Filing requirements

All health maintenance organizations, health care service contractors, and self-funded multiple employer welfare arrangements licensed in the State of Washington during the calendar year must file an electronic tax form, even if no business was actually transacted within Washington during the period. The filing of any form other than the online one provided by this office will be returned as an incomplete filing. Other computer-generated forms are not accepted.

Due date

The completed online form and payment must be received by the Office of Insurance Commissioner on or before March 1 following the end of the calendar year. When the due date falls on a Saturday or Sunday, the form and payment are considered timely if received on the next business day.

CautionCaution: Do not mail a paper version of the form or any attachments to our office.

Completing your premium tax form

Premiums reported must be on the same basis as required on the Annual Statement.

The tax rate is 2 percent. Calculations will be completed automatically.

Selecting "Print" will print your form exactly as it appears on the screen, even if you have not saved your work.

The "Save Progress" button does not check for errors.

CautionRemember: Save your work before moving away from the form; your work is not automatically saved.

Premium Reporting section

Specify How Your Company Reports Premiums

Select whether you are reporting premiums on the tax form based on premiums written or premiums earned.

Health Premiums as Reported on the Annual Statement

All premiums and prepayments collected or received must be reported in this section.

In general, premiums entered in this section should, at a minimum, match premiums reported for Washington on the Exhibit of Premiums, Enrollment and Utilization filed with the National Association of Insurance Commissioners (NAIC).

Medicaid pass-through payments received from Washington State Health Care Authority should also be reported in this section.

Health Premiums - Additional Detail

Premiums reported in this section are not in addition to premiums reported in the previous section; rather, they are a subset of those premiums.

Premiums reported in this section capture detail not available on the Exhibit of Premiums, Enrollment and Utilization. These premiums are carried through to the appropriate schedules as appropriate.

Adult Dental (non-Exchange): This amount is included in Dental Only. The amount entered here will be used to reduce the taxable premiums on Schedule A.

Stand-Alone Adult Dental (Exchange): This amount is included in Dental Only. The amount entered here will reflect premiums from plans offered through the Exchange. We will also use this amount to reduce the taxable premium on Schedule B. In 2014, there were no stand-alone adult dental plans offered through the Exchange.

Qualified Pediatric Dental (non-Exchange): This amount is included in Dental Only. The amount entered here is currently used for information purposes only. Because the revenue for stand-alone pediatric dental (Exchange) is required to be deposited to a separate account at the State Treasury, we want to capture the data for qualified Pediatric dental outside of the Exchange as well.

Non-Qualified Pediatric Dental (non-Exchange): This amount is included in Dental Only. The amount entered here is for all other pediatric dental premiums that aren’t qualified and will be used to reduce the taxable premium on Schedule A.

Stand-Alone Qualified Pediatric Dental (Exchange): This amount is included in Dental Only. The amount entered here will reflect premiums from plans offered through the Exchange. We will use this amount to help us identify Exchange-related premium taxes which must be deposited to a separate account within the State Treasury.

Schedule A - Non-Exchange Health Taxes

Most fields on this schedule are populated from the Premium Reporting section of the tax form.

If your company received Title XVIII Medicare premiums or stand-alone Medicare Part D payments, report the tax exempt federal portion on this schedule.

The health pool assessment available is displayed on this schedule. If the credit available would reduce taxable premiums below zero, the excess credit is carried to Schedule B. If there are no premiums reported on Schedule B, the credit is carried forward to the next tax year.

Schedule B - Exchange Health Taxes

All fields on this schedule are populated from the Premium Reporting section of the tax form.

The Health Pool Assessment Available, after being applied in Schedule A, is displayed on this schedule. If the credit available would reduce taxable premiums below zero, the excess credit is carried forward to the next tax year.

Summary

Most fields of this section are populated from other areas of the tax form.

If your company is no longer active in Washington and this is your final return, enter $0 as the Annual Statement Filing Fee.

Declaration and final submission

Review the Declaration and, if necessary, update the contact information.

The contact information listed here is the insurance commissioner's only point of contact for premium taxes and regulatory surcharge purposes; please make sure the information is accurate.

Enter the name and title of the officer who has examined the form and declares that to the best of this officer’s knowledge and belief, the information is entirely true, accurate, and complete.

Submit your form to the insurance commissioner by clicking "Final Submission."