The Affordable Care Act (ACA) imposes a fee on health insurance issuers and plan sponsors of self-insured health plans to help fund the Patient-Centered Outcomes Research Institute. The fee, called the Patient-Centered Outcomes Research Institute (PCORI) fee, is calculated based on the average number of lives covered under the policy or plan.
The fee applies to policy or plan years ending on or after Oct. 1, 2012, and before Oct. 1, 2019. The PCORI fee is filed using IRS Form 720, Quarterly Federal Excise Tax Return. Although Form 720 is a quarterly return, for PCORI fees, Form 720 must be filed annually only, by July 31 of each year.
The ACA imposes PCORI fees on health insurers and self-insured plan sponsors.
The fee applies to policy or plan years ending on or after Oct. 1, 2012, and before Oct. 1, 2019.
REPORTING & PAYING THE FEE
The IRS’ instructions for filing Form 720 include information on reporting and paying the PCORI fees.
The payment, paid through the Electronic Federal Tax Payment System (EFTPS), should be applied to the second quarter (in EFTPS, select “Q2” for the Quarter under Tax Period on the “Business Tax Payment” page).
For the ACA Overview chart issued by IRS on the PCORI fee application please contact Kelly Insurance Agency. Kelly Insurance Agency will provide additional links and resources upon your request request.
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