The 2017 Comparative Effectiveness Research Fee

wpengine
June 16, 2017
2 min read

It’s that time of year again.
The Affordable Care Act imposes an annual fee called the Comparative Effectiveness Research Fee (CERF) on insurers and plan sponsors of self-insured coverage to help fund the Patient-Centered Outcomes Research Institute. The fee is based on the average covered lives for the applicable plan year.
IRS Notice 2016-64, issued on Nov. 4, provides that the PCORI fee for plan years ending on or after Oct. 1, 2016, and before Oct. 1, 2017, including 2016 calendar year plans, is $2.26 per each person covered, up from $2.17 for the previous plan year.
Paying PCORI Fees
For self-funded plans, the self-insured employer/plan sponsor is responsible for submitting the fee and accompanying paperwork to the IRS. Third-party reporting and payment of the fee is not permitted for self-funded plans.
Employers subject to the fee must submit it by July 31 of the year following the last day of the plan year. For the coming year, self-insured health plan sponsors should use Form 720 for the second calendar quarter to report and pay the PCORI fee by July 31, 2017.
Links:
IRS Form 720
IRS Form 720 Instructions
If you have questions regarding the PCORI fees, call 1.800.250.2741 or email us at solutions@gsanational.com.

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