Seyfarth Synopsis: We previously
blogged that the so-called Cadillac tax was movin' out. Well,
the Patient-Centered Outcomes Research Institute
("PCORI") fee is moving back in. On December 20th, the
President signed the "Further Consolidated Appropriations Act,
2020" (the "Act"), which repealed the Cadillac tax
as well as the annual fee on health insurance providers. The Act,
however, reinstates the PCORI fee paid by health plans for an
additional 10 years.
The Affordable Care Act established the Patient
Centered-Outcomes Research Institute to support research on
clinical effectiveness. The Institute has been funded in part by
fees paid by certain health insurers and sponsors of self-insured
health plans. The PCORI fee is determined by multiplying the
average number of covered lives for the plan year times the
applicable dollar amount, and is paid annually to the IRS using
Form 720. The applicable dollar amount as set by the IRS for 2018
was $2.45 per covered life.
