124 STAT. 867 PUBLIC LAW 111–148—MAR. 23, 2010 (e) THIRD PARTY ADMINISTRATION AGREEMENT FEES.—For pur- poses of this section, the term ‘‘third party administration agree- ment fees’’ means, with respect to any covered entity, amounts received from an employer which are in excess of payments made by such covered entity for health benefits under an arrangement under which such employer self-insures the United States health risk of its employees. (f) TAX TREATMENT OF FEES.—The fees imposed by this sec- tion— (1) for purposes of subtitle F of the Internal Revenue Code of 1986, shall be treated as excise taxes with respect to which only civil actions for refund under procedures of such subtitle shall apply, and (2) for purposes of section 275 of such Code shall be consid- ered to be a tax described in section 275(a)(6). (g) REPORTING REQUIREMENT.— (1) IN GENERAL.—Not later than the date determined by the Secretary following the end of any calendar year, each covered entity shall report to the Secretary, in such manner as the Secretary prescribes, the covered entity’s net premiums written with respect to health insurance for any United States health risk and third party administration agreement fees for such calendar year. (2) PENALTY FOR FAILURE TO REPORT.— (A) IN GENERAL.—In the case of any failure to make a report containing the information required by paragraph (1) on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause, there shall be paid by the covered entity failing to file such report, an amount equal to— (i) $10,000, plus (ii) the lesser of— (I) an amount equal to $1,000, multiplied by the number of days during which such failure con- tinues, or (II) the amount of the fee imposed by this section for which such report was required. (B) TREATMENT OF PENALTY.—The penalty imposed under subparagraph (A)— (i) shall be treated as a penalty for purposes of subtitle F of the Internal Revenue Code of 1986, (ii) shall be paid on notice and demand by the Secretary and in the same manner as tax under such Code, and (iii) with respect to which only civil actions for refund under procedures of such subtitle F shall apply. (h) ADDITIONAL DEFINITIONS.—For purposes of this section— (1) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Treasury or the Secretary’s delegate. (2) UNITED STATES.—The term ‘‘United States’’ means the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the possessions of the United States. (3) HEALTH INSURANCE.—The term ‘‘health insurance’’ shall not include insurance for long-term care or disability. (i) GUIDANCE.—The Secretary shall publish guidance necessary to carry out the purposes of this section. Publication. Notice. Applicability. Definition.
