ACA Compliance Alert — The Affordable Care Act (ACA) requires health insurance issuers and self-insured plan sponsors 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). The PCORI fees do not apply for plan years ending on or after Oct. 1, 2019. Therefore, the 2018 plan year was the last plan year that these fees were effective.
To assess their compliance obligations, employers should:
- Determine which plans are subject to the research fees;
- Assess plan funding to determine whether the issuer or the employer is responsible for the fees; and
- For self-insured plans, select an approach for calculating average covered lives.
For detailed look at PCORI fees, please download this valuable resource from Moore Benefits! And call us with any questions or concerns!