Are ACA fees deductible?

The ACA has added the "Transitional Reinsurance Program Contribution" fee and the "Annual fee for Health Insurer" to my health insurance premium statement.

If I am able to itemize this year (2013) are or can these fees be deducted since they are included in my premiums?

(My January - February statement needs to be paid before January 1, 2014)

Note: Insurance company does not breakout the fees from the total due.


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    I would go ahead and deduct the total premium.

    • OK.  Thanks for the quick response.
    • I agree with SweetieJean's answer.  I've been reading about these two additional fees since reading your question.  It looks like both are assessed to the insurance company as a result of the ACA.  Interesting that they are being passed on to you and designated as such, instead of being "built in" to your total premium.  I, too, would absolutely deduct the total since you must pay those fees to have the insurance.  Keep in mind that in 2013, you can only deduct qualified medical expenses that EXCEED 10% of your AGI (up from 7.5% in 2012).  That is, unless you're 65 or older, in which case you have a few more years for that increase to phase in.
    • Another user had posted a few days ago that these same designations were showing up on his paystubs, even though it is still 2013.
    • I pay my own insurance.
      The letter from the insurer stated that there was to be an increase due to these fees starting with my next premium statement.

      Thanks again to the two of you for your quick responses.
    • By separately stating the ACA fee, I think it's the insurance company's way of saying "it's not my fault your premiums are going up".
    • Yes, that sounds about right.
    • You are almost right.
      FYI
      Here is a quote from the letter.

      "Starting on January 1, 2014, there are two new Affordable Care Act fees. Because of these fees, we must adjust your premium.

      New Affordable Care Act Fees
      On January 1, 2014, two new fees will affect what you pay for your health insurance. These new fees are part of the Affordable Care Act (ACA). These fees are the "Annual Fee on Health Insurers" and the "Transitional Reinsurance Program Contribution Fee". "
    • I need to make a correction. In case this makes a difference.

      I looked again at the statement and on the bottom it says

      * "Total Premium includes the effects of Health Insurer and Reinsurance Fees, plus any federal and state taxes
      applicable to these fees.
      Allocated Taxes & Fees: 53.78
    • jl747:  No hiding the "pass the buck" there!  And federal and state taxes, too!  That last little * just reinforces the answer that you can use these additional fees as deductible medical expenses, though, because it specifically indicates that "Total Premium....."  No question there that these are part of your premium.
    • Great - Thanks.
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