124 STAT. 866 PUBLIC LAW 111–148—MAR. 23, 2010 (B) THIRD PARTY ADMINISTRATION AGREEMENT FEES.— The third party administration agreement fees that are taken into account during any calendar year with respect to any covered entity shall be determined in accordance with the following table: With respect to a covered entity’s third party administration agreement fees during the calendar year that are: The percentage of third party admin- istration agreement fees that are taken into account is: Not more than $5,000,000 ....................... 0 percent More than $5,000,000 but not more than $10,000,000. 50 percent More than $10,000,000 ............................. 100 percent. (3) SECRETARIAL DETERMINATION.—The Secretary shall cal- culate the amount of each covered entity’s fee for any calendar year under paragraph (1). In calculating such amount, the Secretary shall determine such covered entity’s net premiums written with respect to any United States health risk and third party administration agreement fees on the basis of reports submitted by the covered entity under subsection (g) and through the use of any other source of information available to the Secretary. (c) COVERED ENTITY.— (1) IN GENERAL.—For purposes of this section, the term ‘‘covered entity’’ means any entity which provides health insur- ance for any United States health risk. (2) EXCLUSION.—Such term does not include— (A) any employer to the extent that such employer self-insures its employees’ health risks, or (B) any governmental entity (except to the extent such an entity provides health insurance coverage through the community health insurance option under section 1323). (3) CONTROLLED GROUPS.— (A) IN GENERAL.—For purposes of this subsection, all persons treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986 or subsection (m) or (o) of section 414 of such Code shall be treated as a single covered entity (or employer for pur- poses of paragraph (2)). (B) INCLUSION OF FOREIGN CORPORATIONS.—For pur- poses of subparagraph (A), in applying subsections (a) and (b) of section 52 of such Code to this section, section 1563 of such Code shall be applied without regard to subsection (b)(2)(C) thereof. (d) UNITED STATES HEALTH RISK.—For purposes of this section, the term ‘‘United States health risk’’ means the health risk of any individual who is— (1) a United States citizen, (2) a resident of the United States (within the meaning of section 7701(b)(1)(A) of the Internal Revenue Code of 1986), or (3) located in the United States, with respect to the period such individual is so located. Definition. Applicability. Definition.
