Regulatory surcharge calculation

The regulatory surcharge calculation varies by organization type and is based on premiums as reported on your prior year tax form. The minimum amount due is always $1,000.00. The calculations below apply to the 2024 regulatory surcharge due July 15, 2024.

2024 rate 

There is no change to the 2024 rate.

2024 credit

Each year, the regulatory surcharge is calculated based on the annual operating costs of the agency as determined by legislative appropriation. Any cash balance at the end of a fiscal year, less an appropriate cash reserve, is carried forward and used to reduce future regulatory surcharges. This year, the excess fund balance is $6,000,000.

HCSC & MEWA health companies

• Regulatory surcharge rate: .08940%
• Credit factor: .01163977045270%
• Net Regulatory Surcharge Rate: .07776022954730%

Using the "Total Health Premiums" reported on the 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 the regulatory surcharge due.

HMO health companies

• Regulatory surcharge rate: .08940%
• Credit factor: .01164091541820%
• Net Regulatory Surcharge Rate: .07775908458180%

Using the "Total Health Premiums" reported on the 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 the regulatory surcharge due.

Life/disability companies

• Regulatory surcharge rate: .1048%
• Credit factor: .01403317864830%
• Net Regulatory Surcharge Rate: .09076682135170%

Using the "Premiums and Annuities as Reported on the Annual Statement" portion of the 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" portion of the 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 the regulatory surcharge due.

Property/casualty companies

• Regulatory surcharge rate: .1048%
• Credit factor: .01403317864830%
• Net Regulatory Surcharge Rate: .09076682135170%

Using the "Premium Reporting" section of the 2023 tax form, total "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 the regulatory surcharge due.

Title insurers

• Regulatory surcharge rate: .1048%
• Credit factor: .01403317864830%
• Net Regulatory Surcharge Rate: .09076682135170%

Using the "Premiums as Reported on the Annual Statement" section of the 2023 tax form, multiply the "Title Insurance" premiums by the "Net Regulatory Surcharge" rate to determine the regulatory surcharge due.

Accredited, certified, reciprocal jurisdiction, and trusteed alien reinsurers

• Regulatory surcharge rate: .1048%
• Credit factor: .01403317864830%
• Net Regulatory Surcharge Rate: .09076682135170%

Using the "Premiums as Reported on the Annual Statement" section of the 2023 tax form, multiply the "Reinsurer Insurance" premiums by the "Net Regulatory Surcharge" rate to determine the regulatory surcharge due.