Does your company need to pay Health Care Reform’s PCORI Fee?
This fee was established by the Affordable Care Act to help patients, clinicians, payers, and the public make informed health decisions by advancing comparative effectiveness research. However, not all employers are required to pay it themselves.
To help your company assess whether this fee applies to your business — and if so, how to calculate and pay it — we’ve provided a brief overview below.
Key Points for Employers to Review
- The PCORI Fee is due by July 31, 2014
- Self-insured employers are required to pay the fee
- Fully-insured employers that have a HRA or FSA (that does not meet the definition of an excepted benefit) plan in place need to pay the fee
- The IRS Form 720 document must be used to pay the fee (Click here for supporting instructions)
- For plans ending October 1, 2012 – September 30, 2013, the fee is $1 per covered life
- For plans ending October 1, 2013 – September 30, 2014, the fee is $2 per covered life
- The PCORI fees are based on the average number of lives covered under the plan or policy
I hope that you find this summary helpful as you seek to assess your company’s responsibility under Health Care Reform.
For more information on how your company can assess and meet its requirement to this this fee, please contact our team at 781-759-1222 or via email at info@CBGBenefits.com.