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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-...
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This note was uploaded on 11/02/2011 for the course ACC 101 taught by Professor Johnson during the Spring '11 term at Cardinal Stritch.
- Spring '11