The 2017 Comparative Effectiveness Research Fee

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  • June 16, 2017

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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