Have You Paid Your Patient-Centered Outcomes Research Institute Fee?
July 25, 2014
The Patient Protection and Affordable Care Act of 2010 imposes a fee on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans to help fund the Patient-Centered Outcomes Research Institute (PCORI), an independent, not-for-profit organization created to conduct research for patients and caregivers with an eye toward improving health care outcomes. The fee, required to be reported only once a year on the IRS Form 720 and paid by its due date, July 31, is based on the average number of lives covered under the policy or plan. For the purposes of a health reimbursement arrangement (HRA), an employer is allowed to count only employees and disregard the count for dependent family members when calculating the fee. The fee applies to policy or plan years ending on or after Oct. 1, 2012, and before Oct. 1, 2019.
Is your not-for-profit organization a sponsor of a self-insured health plan, including health reimbursement arrangements and health flexible spending arrangements? If so, then your not-for-profit organization may be liable for the PCORI fee.