article 4 - sale However for insurance industries the...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Alysse Johnson Pharmacos, Health Insurers: The Bad Boys of Health Reform? On July FASB issued an accounting standards update about the guidance on how certain fees on pharmaceutical manufacturers and health insurers are remitted to the US Treasury; under the Patient Protection and Affordable Health Care Act, which was amended by the Health Care and Education Reconciliation Act. These are fees that are non-tax deductable. Also for pharmaceutical manufacturers the annual fee is based on the amount of their branded prescription-drug sales for the preceding year as a percent of the industries branded prescription- drug sales for the same period. This fee then becomes in affect and payable to the US Treasury once the entity has a gross receipt from the branded prescription-drug sales on or after January 1, 2011. The liability related to the annual fee must be estimated and recorded in full upon the first
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: sale. However, for insurance industries the annual fee is allocated to individual health insurers based on a ration amount of an entities net premium written during the preceding calendar year to the amount of health insurance for any US health risk written during the preceding calendar year. This fee becomes affective and payable to the US Treasury once the health insurance is provided on or after January 1, 2014. Also the liability must be estimated and recorded when the health care is provided in the applicable year. Both industries must record a corresponding deferred cost that is amortized to expense using the straight line method or another method that better allocates the fee over the payable calendar year. http://www3.cfo.com/article/2011/10/tax_fasb-update-on-patient-protection-act-fees-paid-by-pharmaceuticals-health-insurers-non-tax-deductible-...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern