As indicated in June 2013, healthcare reform created a new nonprofit corporation, the Patient-Centered Outcomes Research Institute (PCORI), to support clinical effectiveness research. This entity will be funded in part by fees (referred to as “PCORI fees” or “CER fees”) paid in part by applicable sponsors of self-insured health plans.

PCORI fees are to be reported and paid once a year. Reports and payments are due no later than July 31 of the year following the last day of the policy or plan year. The IRS has recently announced the new fee for policy and plan years ending on or after October 1, 2014 and before October 1, 2015; the adjusted applicable dollar amount fee is now $2.08.

The fee imposed to the Plan Sponsor of a self-insured health plan is based on the average number of lives covered under the plan. Notably, this means not just employees covered under the plan, but dependents as well.

Disclaimer: The information contained herein is not intended to be legal advice, and while every effort has been made to ensure that the content of this legislative summary is accurate, we makes no representations or warranties in relation to the information provided, and assumes no liability or responsibility for any acts or omissions based on this information. As always, we encourage you to consult with your own legal counsel prior to making any decisions regarding plan design or administration.