80 FR 10333 - Health Insurance Providers Fee

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 80, Issue 38 (February 26, 2015)

Page Range		10333-10335
FR Document		2015-03944
This document contains temporary regulations that provide rules for the definition of a covered entity for purposes of the fee imposed by section 9010 of the Patient Protection and Affordable Care Act, as amended. The temporary regulations are necessary to clarify certain terms in section 9010. The temporary regulations affect persons engaged in the business of providing health insurance for United States health risks. The text of the temporary regulations also serves as the text of the proposed regulations (REG-143416-14) published in the Proposed Rules section in this issue of the Federal Register.
Federal Register, Volume 80 Issue 38 (Thursday, February 26, 2015)
[Federal Register Volume 80, Number 38 (Thursday, February 26, 2015)]
[Rules and Regulations]
[Pages 10333-10335]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03944]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 57

[TD 9711]
RIN 1545-BM52


Health Insurance Providers Fee

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final and temporary regulations.

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SUMMARY: This document contains temporary regulations that provide 
rules for the definition of a covered entity for purposes of the fee 
imposed by section 9010 of the Patient Protection and Affordable Care 
Act, as amended. The temporary regulations are necessary to clarify 
certain terms in section 9010. The temporary regulations affect persons 
engaged in the business of providing health insurance for United States 
health risks. The text of the temporary regulations also serves as the 
text of the proposed regulations (REG-143416-14) published in the 
Proposed Rules section in this issue of the Federal Register.

DATES: Effective Date: These regulations are effective on February 26, 
2015.
    Applicability Date: For dates of applicability, see Sec. Sec.  
57.10 and 57.10T.

FOR FURTHER INFORMATION CONTACT: Rachel S. Smith, (202) 317-6855 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    Section 9010 of the Patient Protection and Affordable Care Act 
(PPACA), Public Law 111-148 (124 Stat. 119 (2010)), as amended by 
section 10905 of PPACA, and as further amended by section 1406 of the 
Health Care and Education Reconciliation Act of 2010, Public Law 111-
152 (124 Stat. 1029 (2010)) (collectively, the Affordable Care Act or 
ACA) imposes an annual fee on covered entities that provide health 
insurance for United States health risks. All references in this 
preamble to section 9010 are references to the ACA. Section 9010 did 
not amend the Internal Revenue Code (Code) but contains cross-
references to specified Code sections. Unless otherwise indicated, all 
other references to subtitles, chapters, subchapters, and sections in 
this preamble are references to subtitles, chapters, subchapters, and 
sections in the Code and related regulations. All references to ``fee'' 
in this preamble are references to the fee imposed by section 9010.
    On November 27, 2013, the Treasury Department and the IRS issued 
the Health Insurance Providers Fee regulations as final regulations (TD 
9643). On August 12, 2014, the Treasury Department and the IRS issued 
Notice 2014-47, 2014-35 IRB 522, to provide further guidance for the 
2014 fee year on the definition of a covered entity. The temporary 
regulations provide further guidance on the definition of a covered 
entity for the 2015 fee year and subsequent fee years.

General Overview

    Section 9010(a) imposes an annual fee on each covered entity 
engaged in the business of providing health insurance. The fee is due 
by the annual date specified by the Secretary, but in no event later 
than September 30th of each calendar year in which a fee must be paid 
(fee year).
    Section 9010(b) requires the Secretary to determine the annual fee 
for each covered entity based on the ratio of the covered entity's net 
premiums written for health insurance for any United States health risk 
that are taken into account for the calendar year immediately before 
the fee year (data year) to the aggregate net premiums written for 
health insurance of United States health risks of all covered entities 
that are taken into account during the data year. In calculating the 
fee, the Secretary must determine each covered entity's net premiums 
written for United States health risks based on reports submitted to 
the Secretary by the covered entity and through the use of any other 
source of information available to the Secretary.
    Section 9010(c)(1) defines a covered entity as any entity that 
provides health insurance for any United States health risk during each 
fee year. Section 9010(c)(2) excludes the following entities from being 
covered entities: (A) Any employer to the extent that the employer 
self-insures its employees' health risks; (B) any governmental entity; 
(C) any entity (i) that is incorporated as a nonprofit corporation 
under a State law, (ii) no part of the net earnings of which inures to 
the benefit of any private shareholder or individual, no substantial 
part of the activities of which is carrying on propaganda, or otherwise 
attempting, to influence legislation (except as otherwise provided in 
section 501(h)), and which does not participate in, or intervene in, 
any political campaign on behalf of (or in opposition to) any candidate 
for public office, and (iii) more than 80 percent of the gross revenues 
of which is received from government programs that target low income, 
elderly, or disabled populations under titles XVIII, XIX, and XXI of 
the Social Security Act; and (D) any entity that is described in 
section 501(c)(9) (a voluntary employees' beneficiary association 
(VEBA)) and is established by an entity (other than by an employer or 
employers) for purposes of providing health care benefits.
    Section 9010(c)(3)(A) provides a controlled group rule under which 
all persons treated as a single employer under section 52(a) or (b) or 
section 414(m) or (o) are treated as a single covered entity. Section 
9010(c)(4) provides that, if more than one person is liable to pay the 
fee on a single covered entity by reason of the application of the 
controlled group rule, then all such persons are jointly and severally 
liable for payment of the fee.
    Section 57.2(c)(1) of the Health Insurance Providers Fee 
regulations defines the term controlled group to mean a group of two or 
more persons, including at least one person that is a covered entity, 
that is treated as a single employer under section 52(a), 52(b), 
414(m), or 414(o). Section 57.2(c)(3)(ii) further provides that a 
person is treated as being a member of the controlled group if it is a 
member of the group at the end of the day on December 31st of the data 
year.

Explanation of Provisions

    Following the publication of the final regulations in TD 9643, the 
Treasury Department and the IRS received questions about how to apply 
the exclusions under section 9010(c)(2) to the general definition of a 
covered entity. The Treasury Department and the IRS also received 
questions about whether covered entities must report information on net 
premiums written for certain members of a controlled group. Notice 
2014-47 was subsequently issued to resolve those questions for the 2014 
fee year. The temporary regulations adopt the general approach of 
Notice 2014-47 to resolve those questions for the 2015 fee year and 
each subsequent fee year.

Application of Exclusions Under Section 9010(c)(2)

    Notice 2014-47 provided that, for the 2014 fee year, the Treasury 
Department and the IRS would not treat any entity as a covered entity 
if it would be

[[Page 10334]]

excluded from the definition of a covered entity because it qualified 
for one of the exclusions under section 9010(c)(2) either for the 
entire 2013 data year or for the entire 2014 fee year, which began on 
January 1, 2014. As described later in this preamble, the controlled 
group rules under section 9010(c)(3)(A) and Sec.  57.2(c)(1) do not 
apply for the limited purpose of determining whether an entity 
qualifies for an exclusion under section 9010(c)(2). Notice 2014-47 
further provided that the entity should not report its net premiums 
written for the 2013 data year because the Treasury Department and the 
IRS would not treat such an entity as a covered entity.
    The temporary regulations amend the rules in the existing Health 
Insurance Providers Fee regulations to incorporate the general approach 
in Notice 2014-47. Specifically, the temporary regulations provide 
that, for the 2015 fee year and each subsequent fee year, an entity 
qualifies for an exclusion under section 9010(c)(2) if it qualifies for 
an exclusion either for the entire data year ending on the prior 
December 31st or for the entire fee year beginning on January 1st. An 
entity that qualifies for an exclusion under this rule is not a covered 
entity for that fee year and must not report its net premiums written.
    The temporary regulations also impose two additional requirements. 
First, the temporary regulations generally impose a consistency 
requirement that binds an entity to its original selection of either 
the data year or the fee year (its test year) to determine whether it 
qualifies for an exclusion under section 9010(c)(2) for the 2015 fee 
year and each subsequent fee year. For example, if an entity selects 
the 2014 data year as its test year for the 2015 fee year, it must use 
the data year as its test year for the 2016 fee year and each 
subsequent fee year.
    Second, the temporary regulations impose a special rule for an 
entity that uses the fee year as its test year. A special rule is 
important in this context because the fee is due by September 30th of 
the fee year, and it may not be clear until the end of the fee year 
whether an entity will in fact qualify for an exclusion. If an entity 
using the fee year as its test year does not report its net premiums 
written because it expects to qualify for an exclusion under section 
9010(c)(2), but the entity ultimately does not qualify for an 
exclusion, the temporary regulations require the entity to use the data 
year as its test year in all subsequent fee years. In this 
circumstance, the entity will necessarily be a covered entity that is 
required to report its net premiums written for the immediately 
following fee year. In addition, an entity that does not timely file a 
report in a fee year, and that is a covered entity for that fee year 
because it does not qualify for an exclusion, may be subject to 
penalties, including the failure to report penalty under section 
9010(g)(2).
    For example, assume that for the 2015 fee year an entity used the 
fee year as its test year and reasonably expected to qualify for the 
section 9010(c)(2)(C) exclusion for that fee year. As a result, the 
entity did not report its net premiums written and it was not treated 
as a covered entity for purposes of the 2015 fee calculation. Further 
assume that as of December 31, 2015, the entity did not satisfy the 80 
percent minimum gross revenues requirement of section 
9010(c)(2)(C)(iii) and therefore did not qualify for this or any other 
exclusion under section 9010(c)(2) for the 2015 fee year. Under the 
temporary regulations, this entity must use the data year for each 
subsequent fee year to determine whether it qualifies for an exclusion 
under section 9010(c)(2). Thus, for the 2016 fee year, because this 
entity must determine its eligibility for an exclusion based on the 
2015 data year, it would not be eligible for an exclusion under section 
9010(c)(2) for the 2016 fee year and must submit a report in that year. 
This entity must also use the data year as its test year for the 2017 
fee year and each subsequent fee year.
    The Treasury Department and the IRS request comments regarding 
whether there are any circumstances in which an entity should be 
permitted by the IRS to change its test year, and if so, what 
conditions and limitations should apply to any such change.

Reporting for Controlled Group Members

    Notice 2014-47 provided that a controlled group must report net 
premiums written only for each person who is a controlled group member 
at the end of the day on December 31st of the data year and who would 
qualify as a covered entity in the fee year if it were a single-person 
covered entity (that is, not a member of a controlled group). The 
temporary regulations incorporate this rule for the 2015 fee year and 
each subsequent fee year. Therefore, a controlled group must not report 
net premiums written for any controlled group member who would fail to 
be a covered entity in the fee year if it were not a member of a 
controlled group. Although that person's net premiums written are not 
taken into account, it remains a member of the controlled group and is 
jointly and severally liable for the fee amount allocated to the 
controlled group.

Special Analyses

    It has been determined that this Treasury decision is not a 
significant regulatory action as defined in Executive Order 12866, as 
supplemented by Executive Order 13563. Therefore, a regulatory 
assessment is not required. It has also been determined that section 
553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does 
not apply to these regulations, and because these regulations do not 
impose a collection of information on small entities, the Regulatory 
Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to 
section 7805(f) of the Code, these temporary regulations have been 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small businesses.

Drafting Information

    The principal author of these regulations is Rachel S. Smith, IRS 
Office of the Associate Chief Counsel (Passthroughs and Special 
Industries). However, other personnel from the Treasury Department and 
the IRS participated in their development.

List of Subjects in 26 CFR Part 57

    Health Insurance, Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR part 57 is amended as follows:

PART 57--HEALTH INSURANCE PROVIDERS FEE

0
Paragraph 1. The authority citation for part 57 continues to read in 
part as follows:

    Authority:  26 U.S.C. 7805; sec. 9010, Public Law 111-148 (124 
Stat. 119 (2010)).

* * * * *

0
Par. 2. Section 57.2 is amended by:
0
1. Redesignating paragraph (b)(3) as paragraph (b)(4).
0
2. Adding paragraph (b)(3).
0
3. Revising paragraph (c)(3)(ii).
    The addition and revision read as follows:


Sec.  57.2  Explanation of terms.

* * * * *
    (b) * * *
    (3) [Reserved]. For further guidance, see Sec.  57.2T(b)(3).
* * * * *
    (c) * * *

[[Page 10335]]

    (3) * * *
    (ii) [Reserved]. For further guidance see Sec.  57.2T(c)(3)(ii).
* * * * *

0
Par. 3. Section 57.2T is added to read as follows:


Sec.  57.2T  Explanation of terms (temporary).

    (a) through (b)(2) [Reserved]. For further guidance, see Sec.  
57.2(a) through (b)(2).
    (3) Application of exclusions--(i) Test year. An entity qualifies 
for an exclusion described in Sec.  57.2(b)(2)(i) through (iv) if it so 
qualifies in its test year. The term test year means either the entire 
data year or the entire fee year.
    (ii) Consistency rule. For purposes of paragraph (b)(3)(i) of this 
section, an entity must use the same test year as it used in its first 
fee year beginning after December 31, 2014, and in each subsequent fee 
year. Thus, for example, if an entity used the 2014 data year as its 
test year for the 2015 fee year, that entity must use the data year as 
its test year for each subsequent fee year.
    (iii) Special rule for fee year as test year. For purposes of 
paragraph (b)(3) of this section, any entity that uses the fee year as 
its test year but ultimately does not qualify for an exclusion 
described in Sec.  57.2(b)(2)(i) through (iv) for that entire fee year 
must use the data year as its test year for each subsequent fee year.
    (b)(4) through (c)(3)(i) [Reserved]. For further guidance, see 
Sec.  57.2(b)(4) through (c)(3)(i).
    (ii) A person is treated as being a member of the controlled group 
if it is a member of the group at the end of the day on December 31st 
of the data year. However, a person's net premiums written are included 
in net premiums written for the controlled group only if the person 
would qualify as a covered entity in the fee year if the person were 
not a member of the controlled group.
    (d) through (n) [Reserved]. For further guidance, see Sec.  52.7(d) 
through (n).

0
Par. 4. Section 57.10 is revised to read as follows:


Sec.  57.10  Effective/applicability date.

    (a) In general. Except as provided in paragraph (b), Sec. Sec.  
57.1 through 57.9 apply to any fee that is due on or after September 
30, 2014.
    (b) [Reserved]. For further guidance, see Sec.  57.10T(b).

0
Par. 5. Section 57.10T is added to read as follows:


Sec.  57.10T  Effective/applicability date (temporary).

    (a) [Reserved]. For further guidance, see Sec.  57.10(a).
    (b) Paragraphs (b)(3) and (c)(3)(ii) of Sec.  57.2T. Paragraphs 
(b)(3) and (c)(3)(ii) of Sec.  57.2T apply on February 26, 2015.
    (c) Expiration date. Paragraphs (b)(3) and (c)(3)(ii) of Sec.  
57.2T expire on February 23, 2018.

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
    Approved: February 19, 2015.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2015-03944 Filed 2-23-15; 4:15 pm]
BILLING CODE 4830-01-P
10334 Federal Register / Vol. 80, No. 38 / Thursday, February 26, 2015 / Rules and Regulations

excluded from the definition of a immediately following fee year. In for the fee amount allocated to the
covered entity because it qualified for addition, an entity that does not timely controlled group.
one of the exclusions under section file a report in a fee year, and that is a
Special Analyses
9010(c)(2) either for the entire 2013 data covered entity for that fee year because
year or for the entire 2014 fee year, it does not qualify for an exclusion, may It has been determined that this
which began on January 1, 2014. As be subject to penalties, including the Treasury decision is not a significant
described later in this preamble, the failure to report penalty under section regulatory action as defined in
controlled group rules under section 9010(g)(2). Executive Order 12866, as
9010(c)(3)(A) and § 57.2(c)(1) do not For example, assume that for the 2015 supplemented by Executive Order
apply for the limited purpose of fee year an entity used the fee year as 13563. Therefore, a regulatory
determining whether an entity qualifies its test year and reasonably expected to assessment is not required. It has also
for an exclusion under section qualify for the section 9010(c)(2)(C) been determined that section 553(b) of
9010(c)(2). Notice 2014–47 further exclusion for that fee year. As a result, the Administrative Procedure Act (5
provided that the entity should not the entity did not report its net U.S.C. chapter 5) does not apply to these
report its net premiums written for the premiums written and it was not treated regulations, and because these
2013 data year because the Treasury as a covered entity for purposes of the regulations do not impose a collection
Department and the IRS would not treat 2015 fee calculation. Further assume of information on small entities, the
such an entity as a covered entity. that as of December 31, 2015, the entity Regulatory Flexibility Act (5 U.S.C.
The temporary regulations amend the did not satisfy the 80 percent minimum chapter 6) does not apply. Pursuant to
rules in the existing Health Insurance gross revenues requirement of section section 7805(f) of the Code, these
Providers Fee regulations to incorporate 9010(c)(2)(C)(iii) and therefore did not temporary regulations have been
the general approach in Notice 2014–47. qualify for this or any other exclusion submitted to the Chief Counsel for
Specifically, the temporary regulations under section 9010(c)(2) for the 2015 fee Advocacy of the Small Business
provide that, for the 2015 fee year and year. Under the temporary regulations, Administration for comment on its
each subsequent fee year, an entity this entity must use the data year for impact on small businesses.
qualifies for an exclusion under section each subsequent fee year to determine
9010(c)(2) if it qualifies for an exclusion Drafting Information
whether it qualifies for an exclusion
either for the entire data year ending on under section 9010(c)(2). Thus, for the The principal author of these
the prior December 31st or for the entire 2016 fee year, because this entity must regulations is Rachel S. Smith, IRS
fee year beginning on January 1st. An Office of the Associate Chief Counsel
determine its eligibility for an exclusion
entity that qualifies for an exclusion (Passthroughs and Special Industries).
based on the 2015 data year, it would
under this rule is not a covered entity However, other personnel from the
not be eligible for an exclusion under
for that fee year and must not report its Treasury Department and the IRS
section 9010(c)(2) for the 2016 fee year
net premiums written. participated in their development.
The temporary regulations also and must submit a report in that year.
impose two additional requirements. This entity must also use the data year List of Subjects in 26 CFR Part 57
First, the temporary regulations as its test year for the 2017 fee year and
each subsequent fee year. Health Insurance, Reporting and
generally impose a consistency recordkeeping requirements.
requirement that binds an entity to its The Treasury Department and the IRS
original selection of either the data year request comments regarding whether Adoption of Amendments to the
or the fee year (its test year) to there are any circumstances in which an Regulations
determine whether it qualifies for an entity should be permitted by the IRS to Accordingly, 26 CFR part 57 is
exclusion under section 9010(c)(2) for change its test year, and if so, what amended as follows:
the 2015 fee year and each subsequent conditions and limitations should apply
fee year. For example, if an entity to any such change. PART 57—HEALTH INSURANCE
selects the 2014 data year as its test year Reporting for Controlled Group PROVIDERS FEE
for the 2015 fee year, it must use the Members
data year as its test year for the 2016 fee ■ Paragraph 1. The authority citation
year and each subsequent fee year. Notice 2014–47 provided that a for part 57 continues to read in part as
Second, the temporary regulations controlled group must report net follows:
impose a special rule for an entity that premiums written only for each person Authority: 26 U.S.C. 7805; sec. 9010,
uses the fee year as its test year. A who is a controlled group member at the Public Law 111–148 (124 Stat. 119 (2010)).
special rule is important in this context end of the day on December 31st of the
because the fee is due by September data year and who would qualify as a * * * * *
30th of the fee year, and it may not be covered entity in the fee year if it were ■ Par. 2. Section 57.2 is amended by:
clear until the end of the fee year a single-person covered entity (that is, ■ 1. Redesignating paragraph (b)(3) as
whether an entity will in fact qualify for not a member of a controlled group). paragraph (b)(4).
an exclusion. If an entity using the fee The temporary regulations incorporate ■ 2. Adding paragraph (b)(3).
year as its test year does not report its this rule for the 2015 fee year and each ■ 3. Revising paragraph (c)(3)(ii).
net premiums written because it expects subsequent fee year. Therefore, a The addition and revision read as
to qualify for an exclusion under section controlled group must not report net follows:
9010(c)(2), but the entity ultimately premiums written for any controlled
does not qualify for an exclusion, the group member who would fail to be a § 57.2 Explanation of terms.
rmajette on DSK2VPTVN1PROD with RULES

temporary regulations require the entity covered entity in the fee year if it were * * * * *
to use the data year as its test year in not a member of a controlled group. (b) * * *
all subsequent fee years. In this Although that person’s net premiums (3) [Reserved]. For further guidance,
circumstance, the entity will necessarily written are not taken into account, it see § 57.2T(b)(3).
be a covered entity that is required to remains a member of the controlled * * * * *
report its net premiums written for the group and is jointly and severally liable (c) * * *

VerDate Sep<11>2014 14:38 Feb 25, 2015 Jkt 235001 PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 E:\FR\FM\26FER1.SGM 26FER1
Federal Register / Vol. 80, No. 38 / Thursday, February 26, 2015 / Rules and Regulations 10335

(3) * * * (b) Paragraphs (b)(3) and (c)(3)(ii) of that would result in a contrary
(ii) [Reserved]. For further guidance § 57.2T. Paragraphs (b)(3) and (c)(3)(ii) determination. Comments will be
see § 57.2T(c)(3)(ii). of § 57.2T apply on February 26, 2015. accepted on or before April 27, 2015.
* * * * * (c) Expiration date. Paragraphs (b)(3) ADDRESSES: You may submit comments,
and (c)(3)(ii) of § 57.2T expire on identified by docket number and/or
■ Par. 3. Section 57.2T is added to read
February 23, 2018. Regulatory Information Number (RIN)
as follows:
John Dalrymple, and title, by any of the following
§ 57.2T Explanation of terms (temporary). methods:
Deputy Commissioner for Services and
(a) through (b)(2) [Reserved]. For Enforcement. • Federal Rulemaking Portal: http://
further guidance, see § 57.2(a) through Approved: February 19, 2015. www.regulations.gov. Follow the
(b)(2). Mark J. Mazur, instructions for submitting comments.
(3) Application of exclusions—(i) Test Assistant Secretary of the Treasury (Tax • Mail: Federal Docket Management
year. An entity qualifies for an Policy). System Office, 4800 Mark Center Drive,
exclusion described in § 57.2(b)(2)(i) [FR Doc. 2015–03944 Filed 2–23–15; 4:15 pm] East Tower, Suite 02G09, Alexandria,
through (iv) if it so qualifies in its test BILLING CODE 4830–01–P VA 22350–3100.
year. The term test year means either the Instructions: All submissions received
entire data year or the entire fee year. must include the agency name and
(ii) Consistency rule. For purposes of DEPARTMENT OF DEFENSE docket number or RIN for this Federal
paragraph (b)(3)(i) of this section, an Register document. The general policy
entity must use the same test year as it Department of the Army for comments and other submissions
used in its first fee year beginning after from members of the public is to make
December 31, 2014, and in each 32 CFR Part 505 these submissions available for public
subsequent fee year. Thus, for example, viewing on the Internet at http://
if an entity used the 2014 data year as [USA–2014–0006]
www.regulations.gov as they are
its test year for the 2015 fee year, that RIN 0702–AA65 received without change, including any
entity must use the data year as its test personal identifiers or contact
year for each subsequent fee year. Army Privacy Program information.
(iii) Special rule for fee year as test AGENCY: Department of the Army, DoD. FOR FURTHER INFORMATION CONTACT: Ms.
year. For purposes of paragraph (b)(3) of
ACTION: Direct final rule. Tracy Rogers, Chief, FOIA/PA,
this section, any entity that uses the fee
telephone: 703–428–6513.
year as its test year but ultimately does SUMMARY: The Department of the Army
not qualify for an exclusion described in is amending the Army Privacy Program SUPPLEMENTARY INFORMATION:
§ 57.2(b)(2)(i) through (iv) for that entire Regulation. Specifically, Army is Direct Final Rule and Significant
fee year must use the data year as its test reinstating exemptions that were Adverse Comments
year for each subsequent fee year. mistakenly deleted when the Army’s
(b)(4) through (c)(3)(i) [Reserved]. For Privacy Program Regulation was last DoD has determined this rulemaking
further guidance, see § 57.2(b)(4) revised. These rules provide policies meets the criteria for a direct final rule
through (c)(3)(i). and procedures for the Army’s because it involves changes dealing
(ii) A person is treated as being a implementation of the Privacy Act of with DoD’s management of its Privacy
member of the controlled group if it is 1974, as amended. Programs. DoD expects no opposition to
a member of the group at the end of the This direct final rule makes changes the changes and no significant adverse
day on December 31st of the data year. to the Department of the Army’s Privacy comments. However, if DoD receives a
However, a person’s net premiums Program rules. These changes will allow significant adverse comment, the
written are included in net premiums the Department to exempt records from Department will withdraw this direct
written for the controlled group only if certain portions of the Privacy Act. This final rule by publishing a notice in the
the person would qualify as a covered will improve the efficiency and Federal Register. A significant adverse
entity in the fee year if the person were effectiveness of DoD’s program by comment is one that explains: (1) Why
not a member of the controlled group. preserving the exempt status of the the direct final rule is inappropriate,
(d) through (n) [Reserved]. For further records when the purposes underlying including challenges to the rule’s
guidance, see § 52.7(d) through (n). the exemption are valid and necessary underlying premise or approach; or (2)
to protect the contents of the records. why the direct final rule will be
■ Par. 4. Section 57.10 is revised to read
This rule is being published as a ineffective or unacceptable without a
as follows: change. In determining whether a
direct final rule as the Department of
§ 57.10 Effective/applicability date. Defense does not expect to receive any comment necessitates withdrawal of
adverse comments, and so a proposed this direct final rule, DoD will consider
(a) In general. Except as provided in
rule is unnecessary. whether it warrants a substantive
paragraph (b), §§ 57.1 through 57.9
The revisions to these rules are part response in a notice and comment
apply to any fee that is due on or after
of DoD’s retrospective plan under process.
September 30, 2014.
(b) [Reserved]. For further guidance, Executive Order 13563 completed in Executive Summary
see § 57.10T(b). August 2011. DoD’s full plan can be
accessed at http://www.whitehouse.gov/ I. Purpose of This Regulatory Action
rmajette on DSK2VPTVN1PROD with RULES

■ Par. 5. Section 57.10T is added to read
sites/default/files/other/2011-regulatory a. These rules provide policies and
as follows: -action-plans/department procedures for Army’s implementation
§ 57.10T Effective/applicability date ofdefenseregulatory of the Privacy Act of 1974, as amended.
(temporary). reformplanaugust2011a.pdf. b. Authority: Privacy Act of 1974,
(a) [Reserved]. For further guidance, DATES: The rule will be effective on May Public Law 93–579, Stat. 1896 (5 U.S.C.
see § 57.10(a). 7, 2015 unless comments are received 552a).

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Document Created: 2015-12-18 13:04:58
Document Modified: 2015-12-18 13:04:58
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final and temporary regulations.
Contact		Rachel S. Smith, (202) 317-6855 (not a toll-free number).
FR Citation		80 FR 10333
RIN Number		1545-BM52
CFR Associated		Health Insurance and Reporting and Recordkeeping Requirements
80 FR 10333 - Health Insurance Providers Fee

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 80, Issue 38 (February 26, 2015)

DEPARTMENT OF THE TREASURY
Internal Revenue Service
