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ARTICLE · 26 JULY 2013

Employee Benefits Update - July 2013

The Patient Protection and Affordable Care Act imposes fees on plan sponsors of applicable self-insured health plans to help fund the Patient-Centered Outcome Research Institute .

United StatesEmployment and HR

SELECT COMPLIANCE DEADLINES AND REMINDERS

Payment of Patient-Centered Outcomes Research Fee Due by July 31

The Patient Protection and Affordable Care Act (PPACA) imposes fees on plan sponsors of applicable self-insured health plans to help fund the Patient-Centered Outcome Research Institute (PCORI). The fee, based on the average number of lives covered under the policy or plan, is required to be reported annually on the 2nd quarter Form 720 and to be paid by July 31. The fees apply to policy or plan years ending on or after October 1, 2012, and before October 1, 2019. On June 3, 2013, the Internal Revenue Service (IRS) released an updated Form 720 and companion instructions, available at http://www.irs.gov/pub/irs-pdf/f720.pdf and http://www.irs.gov/pub/irs-pdf/i720.pdf respectively.

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