Surcharge calculations

Fraud surcharge

There is no change to the 2024 rate.

Each year, we calculate the fraud surcharge based on the yearly costs of operating our fraud division. The Legislature determines these costs. At the end of a fiscal year, we use most of the leftover funds to reduce future fraud surcharges. This year, we have $475,000 in leftover funds.

Regulatory surcharge

There is no change to the 2024 rate.

Each year, we calculate the regulatory surcharge based on the yearly costs of operating our agency. The Legislature determines these costs. At the end of a fiscal year, we use most of our leftover funds to reduce future fraud surcharges. This year, we have $6,000,000 in leftover funds.

HCSC and MEWA health companies

Fraud surcharge

  • Fraud surcharge rate: 0.005200%
  • Credit factor: 0.00099918943080%
  • Net Fraud Surcharge Rate: 0.00420081056920%

Using the "Total Health Premiums" from your 2023 tax form:

  1. From "Total Health Premiums," subtract "Federal Health Employees Benefit Plan."
  2. From "Health Premiums – Additional Detail," subtract "General Assistance – Unemployable (GAU)" and "Basic Health Plan (BHP) (Subsidized Premiums)."
  3. From Schedule A – Non-Exchange Health Taxes, subtract "Medicare Title XVIII (Federally exempt only)" and "Stand-alone Medicare Part D (Federally exempt only)."

Multiply the result by the fraud surcharge rate to determine what you owe.

Regulatory surcharge

  • Regulatory surcharge rate: 0.08940%
  • Credit factor: 0.01163977045270%
  • Net Regulatory Surcharge Rate: 0.07776022954730%

Using the "Total Health Premiums" from your 2023 tax form:

  1. From "Total Health Premiums," subtract "Federal Health Employees Benefit Plan."
  2. From "Health Premiums – Additional Detail," subtract "General Assistance – Unemployable (GAU)" and "Basic Health Plan (BHP) (Subsidized Premiums)."
  3. From Schedule A – Non-Exchange Health Taxes, subtract "Medicare Title XVIII (Federally exempt only)" and "Stand-alone Medicare Part D (Federally exempt only)."

Multiply the result by the "Net Regulatory Surcharge" rate to determine what you owe.

HMO health companies

Fraud surcharge

  • Fraud surcharge rate: 0.005200%
  • Credit factor: 0.00099933783800%
  • Net Fraud Surcharge Rate: 0.00420066216200%

Using the "Total Health Premiums" from your 2023 tax form:

  1. From "Total Health Premiums," subtract "Federal Health Employees Benefit Plan."
  2. From "Health Premiums – Additional Detail," subtract "General Assistance – Unemployable (GAU)" and "Basic Health Plan (BHP) (Subsidized Premiums)."
  3. From Schedule A – Non-Exchange Health Taxes, subtract "Medicare Title XVIII (Federally exempt only)" and "Stand-alone Medicare Part D (Federally exempt only)."

Multiply the result by the fraud surcharge rate to determine what you owe.

Regulatory surcharge

  • Regulatory surcharge rate: 0.08940%
  • Credit factor: 0.01164091541820%
  • Net Regulatory Surcharge Rate: 0.07775908458180%

Using the "Total Health Premiums" from your 2023 tax form:

  1. From "Total Health Premiums," subtract "Federal Health Employees Benefit Plan."
  2. From "Health Premiums – Additional Detail," subtract "General Assistance – Unemployable (GAU)" and "Basic Health Plan (BHP) (Subsidized Premiums)." 
  3. From Schedule A – Non-Exchange Health Taxes, subtract "Medicare Title XVIII (Federally exempt only)" and "Stand-alone Medicare Part D (Federally exempt only)."

Multiply the result by the "Net Regulatory Surcharge" rate to determine what you owe.

Life/disability companies

Fraud surcharge

  • Fraud surcharge rate: 0.005200%
  • Credit factor: 0.00105639220010%
  • Net Fraud Surcharge Rate: 0.00414360779990%

Using the "Premiums and Annuities as Reported on the Annual Statement" from your 2023 tax form:

  1. Add "Life Insurance and Annuities totals (Column 1)."
  2. Subtract "Dividends to Policyholders/Refunds to Members totals (Column 7)."
  3. Add "Total Accident and Health Premiums."
  4. Subtract "Federal Employees Health Benefits Act Premiums."
  5. Subtract "Medicare Title XVIII Exempt from State Taxes or Fees."

Using the "Premiums and Annuities – Additional Detail" from your 2023 tax form:

  1. Subtract "Qualified Life Premiums."
  2. Add "Qualified Life Dividends."
  3. Subtract "Qualified Annuities."
  4. Add "Qualified Annuity Dividends."

Using "Schedule A, Life Premium Taxes," subtract "AAFES Group Life Premiums."

Using "Non-Exchange Accident and Health Taxes (Schedule B for domestic companies or Schedule C foreign companies)," subtract "AAFES Group Accidental Death and Dismemberment Premiums."

Multiply the result by the Fraud Surcharge rate to determine what you owe.

Regulatory surcharge

  • Regulatory surcharge rate: 0.1048%
  • Credit factor: 0.01403317864830%
  • Net Regulatory Surcharge Rate: 0.09076682135170%

Using the "Premiums and Annuities as Reported on the Annual Statement" from your 2023 tax form:

  1. Add "Life Insurance and Annuities totals (Column 1)."
  2. Subtract "Dividends to Policyholders/Refunds to Members totals (Column 7)."
  3. Add "Total Accident and Health Premiums."
  4. Subtract "Federal Employees Health Benefits Act Premiums."
  5. Subtract "Medicare Title XVIII Exempt from State Taxes or Fees."

Using the "Premiums and Annuities – Additional Detail" from your 2023 tax form:

  1. Subtract "Qualified Life Premiums."
  2. Add "Qualified Life Dividends."
  3. Subtract "Qualified Annuities."
  4. Add "Qualified Annuity Dividends."

Using "Schedule A, Life Premium Taxes," subtract "AAFES Group Life Premiums."

Using "Non-Exchange Accident and Health Taxes (Schedule B for domestic companies or Schedule C foreign companies)," subtract "AAFES Group Accidental Death and Dismemberment Premiums."

Multiply the result by the "Net Regulatory Surcharge" rate to determine what you owe.

Property/casualty companies

Fraud surcharge

  • Fraud surcharge rate: 0.005200%
  • Credit factor: 0.00105639220010%
  • Net Fraud Surcharge Rate: 0.00414360779990%

Using the "Premium Reporting" section of your 2023 tax form, add together "All Lines of Business" and:

  1. Subtract "Multiple Peril Crop."
  2. Subtract "Medicare Title XVIII Exempt from State Taxes or Fees."
  3. Subtract "Federal Employees Health Benefits Act (FEHBA) Premiums."
  4. Add "Finance and Service Charges."
  5. Subtract "Dividends Paid or Credited to Policy Holders on Direct Business."

Multiply the result by the fraud surcharge rate to determine what you owe.

Regulatory surcharge

  • Regulatory surcharge rate: 0.1048%
  • Credit factor: 0.01403317864830%
  • Net Regulatory Surcharge Rate: 0.09076682135170%

Using the "Premium Reporting" section of your 2023 tax form, add together "All Lines of Business" and:

  1. Subtract "Multiple Peril Crop."
  2. Subtract "Medicare Title XVIII Exempt from State Taxes or Fees."
  3. Subtract "Federal Employees Health Benefits Act (FEHBA) Premiums."
  4. Add "Finance and Service Charges."
  5. Subtract "Dividends Paid or Credited to Policy Holders on Direct Business."

Multiply the result by the "Net Regulatory Surcharge" rate to determine what you owe.

Title insurers

Fraud surcharge

  • Fraud surcharge rate: 0.005200%
  • Credit factor: 0.00105639220010%
  • Net Fraud Surcharge Rate: 0.00414360779990%

Using the "Premiums as Reported on the Annual Statement" section of your 2023 tax form, multiply the "Title Insurance" premiums by the fraud surcharge rate to determine what you owe.

Regulatory surcharge

  • Regulatory surcharge rate: 0.1048%
  • Credit factor: 0.01403317864830%
  • Net Regulatory Surcharge Rate: 0.09076682135170%

Using the "Premiums as Reported on the Annual Statement" section of your 2023 tax form, multiply the "Title Insurance" premiums by the "Net Regulatory Surcharge" rate to determine what you owe.

Accredited, certified, reciprocal jurisdiction, and trusteed alien reinsurers

Fraud surcharge

  • Fraud surcharge rate: 0.005200%
  • Credit factor: 0.00105639220010%
  • Net Fraud Surcharge Rate: 0.00414360779990%

Using the "Premiums as Reported on the Annual Statement" section of your 2023 tax form, multiply the "Reinsurer Insurance" premiums by the Fraud surcharge rate to determine what you owe.

Regulatory surcharge

  • Regulatory surcharge rate: 0.1048%
  • Credit factor: 0.01403317864830%
  • Net Regulatory Surcharge Rate: 0.09076682135170%

Using the "Premiums as Reported on the Annual Statement" section of your 2023 tax form, multiply the "Reinsurer Insurance" premiums by the "Net Regulatory Surcharge" rate to determine what you owe.