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IRS Publishes State Average Premium Rates For Small Group Markets.

MAY 3, 2010

Rev. Rul. 2010-13; 2010-21 I.R.B. 691

DATED MAY 3, 2010
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Subject Areas/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2010-9846
  • Tax Analysts Electronic Citation
    2010 TNT 85-6
Citations: Rev. Rul. 2010-13; 2010-21 I.R.B. 691

Part I

Section 45R -- Average premium for small group market for determining the small employer health insurance credit

(Also Section 38(b))

Section 45R was added to the Internal Revenue Code by section 1421 of the Patient Protection and Affordable Care Act (the Affordable Care Act), Pub. L. No. 111-148. The Affordable Care Act was signed by the President on March 23, 2010. Section 45R is effective for taxable years beginning after December 31, 2009.

Section 45R provides a Federal income tax credit to eligible small employers, including tax-exempt organizations, that make nonelective contributions towards their employees' health insurance premiums under an arrangement that meets certain requirements. For taxable years beginning before 2014, the amount of the credit is based on a percentage of the lesser of: 1) the amount of nonelective contributions paid by the eligible small employer on behalf of employees under the arrangement during the taxable year, and 2) the amount of nonelective contributions the employer would have paid under the arrangement if each such employee were enrolled in a plan that had a premium equal to the average premium for the small group market in the State (or in an area in the State) in which the employer is offering health insurance coverage. The Secretary of Health and Human Services (HHS) determines whether separate average premiums will apply for areas within a State ("sub-State areas") and also determines the average premium for a State or sub-State area. The chart below sets forth the average premium for the small group market in each State for the 2010 taxable year, as determined by HHS.

HHS recognizes that there may be areas in some States with meaningfully higher premium rates. For the 2010 taxable year, HHS may provide additional average premium rates for the small group market in certain areas within States. However, in no case will any such additional sub-State rates be lower than the applicable rate for each State that is set forth in this Revenue Ruling.

The following chart sets forth the average premium for the small group market in each State for the 2010 taxable year. Family coverage includes any coverage other than employee-only (or single) coverage.

 ____________________________________________________________________

 

                            Employee-only

 

 State                         Coverage         Family Coverage

 

 ____________________________________________________________________

 

 

 Alaska                         $6,204              $13,723

 

 Alabama                         4,441               11,275

 

 Arkansas                        4,329                9,677

 

 Arizona                         4,495               10,239

 

 California                      4,628               10,957

 

 Colorado                        4,972               11,437

 

 Connecticut                     5,419               13,484

 

 District of Columbia            5,355               12,823

 

 Delaware                        5,602               12,513

 

 Florida                         5,161               12,453

 

 Georgia                         4,612               10,598

 

 Hawaii                          4,228               10,508

 

 Iowa                            4,652               10,503

 

 Idaho                           4,215                9,365

 

 Illinois                        5,198               12,309

 

 Indiana                         4,775               11,222

 

 Kansas                          4,603               11,462

 

 Kentucky                        4,287               10,434

 

 Louisiana                       4,829               11,074

 

 Massachusetts                   5,700               14,138

 

 Maryland                        4,837               11,939

 

 Maine                           5,215               11,887

 

 Michigan                        5,098               12,364

 

 Minnesota                       4,704               11,938

 

 Missouri                        4,663               10,681

 

 Mississippi                     4,533               10,501

 

 Montana                         4,772               10,212

 

 North Carolina                  4,920               11,583

 

 North Dakota                    4,469               10,506

 

 Nebraska                        4,715               11,169

 

 New Hampshire                   5,519               13,624

 

 New Jersey                      5,607               13,521

 

 New Mexico                      4,754               11,404

 

 Nevada                          4,553               10,297

 

 New York                        5,442               12,867

 

 Ohio                            4,667               11,293

 

 Oklahoma                        4,838               11,002

 

 Oregon                          4,681               10,890

 

 Pennsylvania                    5,039               12,471

 

 Rhode Island                    5,887               13,786

 

 South Carolina                  4,899               11,780

 

 South Dakota                    4,497               11,483

 

 Tennessee                       4,611               10,369

 

 Texas                           5,140               11,972

 

 Utah                            4,238               10,935

 

 Virginia                        4,890               11,338

 

 Vermont                         5,244               11,748

 

 Washington                      4,543               10,725

 

 Wisconsin                       5,222               12,819

 

 West Virginia                   4,986               11,611

 

 Wyoming                         5,266               12,163

 

 ____________________________________________________________________

 

 

DRAFTING INFORMATION

The principal author of this revenue ruling is Mireille Khoury of the Office of the Division Counsel/Associate Chief Counsel (Tax Exempt & Government Entities). For further information regarding this revenue ruling, contact Mireille Khoury at (202) 622-6080 (not a toll-free call). For questions regarding the data contained in the table of average State premiums, contact Tara Oakman of the Department of Health and Human Services at (202) 690-6870 (not a toll-free call).

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Subject Areas/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2010-9846
  • Tax Analysts Electronic Citation
    2010 TNT 85-6
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