Businesses Face New Fee for Employee Benefits Plans under Health Care Reform

The IRS has issued a final rule that employers who offer various benefit plans must pay a fee to fund the Patient-Centered Outcomes Research Institute (PCORI), which was established by the Patient Protection and Affordable Care Act (PPACA). The fee will be assessed on plan sponsors and issuers of individual and group policies for policy or plan years ending after Sept. 30, 2012. The first year of the fee is due July 31, 2013, and is equal to $1 per covered life per year.

“Even though this fee may seem insignificant, this is one of many fees that will increase the cost to provide insurance to employees under the PPACA,” said Anita Baker, employee benefit plans managing partner at CliftonLarsonAllen LLP.

Under the IRS rule, issuers and plan sponsors are responsible for paying the fee, which is treated like an excise tax. A federal excise tax form reporting liability for the fee must be filed by July 31 of the calendar year immediately following the last day of the plan year.

Experienced CliftonLarsonAllen employee benefits professionals can help explain to business readers which plans are subject to the fee and how plan sponsors calculate cost per covered employee. Please contact Ann Dee Allen at for exclusive interviews or articles on this topic. Learn more at; follow us on Twitter@CLA_Benefits.

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