Below is an FAQ regarding the Patient Centered Outcomes Research Institute Fee. This is a program created through the Healthcare Reform Legislation. Every group will need to pay this fee.
PCORI Facts:
•
Fee will be collected for seven years.
•
Will affect those Plan Year ends between 2012
and 2019.
•
Fee based on number of Health Plan and
Self-Insured Participants.
•
Due each year on July 31st.
•
Fee is equal to the average number of Plan
participants x $1.
•
PCORI multiplier will increase to $2 in 2014.
•
Clients face potential of significant penalties
for failing to comply.
If your group is fully insured the carrier pays this fee for
the client (its built into the rates). However if you are self insured or
offer an HRA each group will need to report and pay these fees. The fees
for Year 1 are $1 per covered individual, Year 2 is $2 per covered
individual. There are a few methods to calculate the number of covered
individuals (covered in detail in the attached) and these fees are paid using
form IRS 720.
Please Contact us at Friedman Associates for the updated Form 720 and with any questions you have regarding this process.
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