Thursday, June 6, 2013

Deadline for PCORI is Drawing Closer....




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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