Health Care Reform PCORI Fee <br/> Due July 31
Posted on July 9, 2013
One of the new fees associated with the Affordable Care Act is the Patient-Centered Outcomes Research Institute (PCORI) fee, which helps to fund medical research. The goal of the Institute is to help Americans make better health choices and eventually lower health care costs. The first payments are due by July 31, 2013.
1. Who has to pay the PCORI fee?
The following groups are responsible for reporting and paying the PCORI fee:
* Issuers of specified health insurance policies
* Plan sponsors of applicable self-insured health plans
2. How much is the fee?
The amount of the PCORI fee is equal to the average number of lives covered during the policy year or plan year, multiplied by the applicable dollar amount for the year.
* For policy and plan years ending after September 30, 2012 and before
October 1, 2013, the applicable dollar amount is $1.
* For policy and plan years ending after September 30, 2013 and before October 1, 2014, the applicable dollar amount is $2.
* For policy and plan years beginning on or after October 1, 2014 and before October 1, 2019, the applicable dollar amount will be further adjusted to reflect inflation in US health expenditures as determined by the Secretary of Health and Human Services.
3. How should the fee be reported?
The PCORI fee will be reported on Form 720. The form and the payment will be due on July 31 of the year following the last day of the policy or plan year. Electronic filing is available but not required.
View the IRS Question & Answer page on the PCORI fee for more information.
Source: Internal Revenue Service