- Posted by Scott Wham
- On May 1, 2015
The Affordable Care Act (ACA) requires health insurance issuers and sponsors of self-insured health plans to pay Patient-Centered Outcomes Research Institute fees (PCORI fees). The fees are reported and paid annually using IRS Form 720 (Quarterly Federal Excise Tax Return).
As such, health insurance issuers and sponsors of self-insured health plans are required to pay fees to help finance the Institute’s research. These fees are commonly referred to as PCORI fees. Both fully-insured and self-insured plans are subject to the PCORI fees. For self-insured plans, the plan sponsor is responsible for the fee. For insured plans, the insurers are responsible for the fee. Most insurers will build the fee into their current pricing model.
PCORI fees will be due by July 31, 2015, for plan years ending in 2014. IRS instructions for filing form 720, which were revised in January 2015, include information on reporting and paying the PCORI fees.
To read more about the PCORI fee, please click here.