PCORI Fees and Whether You Have to Pay Them

Beth Dean 11.01.12
113 Laptop On White Vertical

Health care reform’s Affordable Care Act (ACA) includes a provision in which fees are collected to fund research conducted by the Patient-Centered Outcomes Research Institute (PCORI). The research will evaluate effectiveness, risks, and benefits of medical treatments or services to allow the public to make more informed choices.

The fee will be assessed for plan years ending after September 30, 2012, through 2019. It is assessed at a rate of $1 per covered life for the first year, $2 per covered life the second year, then will be indexed to national health expenditures until it phases out in 2019. The fees must be reported to the IRS annually on Form 720 by July 31 of the calendar year immediately following the last day of the plan year.

Because the health plans of Nextep’s clients are fully-funded (rather than self-insured), the insurance provider will be solely responsible for calculating, reporting, and paying these fees. No further action is needed by plan sponsors.

For additional questions, please contact Nextep’s Benefits Department.

Also on Nextep

An Employer’s Guide to Politics in the Workplace The current political climate can be divisive, and tension can easily spill over into the workplace. When employees hold vastly different political views, it can lead to arguments, hurt feelings, and a fractured work environment. So, what’s an employer’s responsibility when it comes to politics in the […]
Read more
An OSHA inspection can feel daunting, but understanding the process can empower you to get through it smoothly. This guide will equip you with the knowledge you need to ensure a collaborative and efficient experience for everyone involved. When might you encounter an OSHA inspector?  Imagine a concerned employee reports a potential safety hazard. Or […]
Read more
How to handle insurance during leave of absence Employee leaves of absence from work raise questions, especially about health benefits. Who shoulders the insurance premiums during the leave? Let’s untangle this knot one thread at a time. Paid Leave: Business as Usual Paid leaves are straightforward. Simply maintain regular benefit deductions from their paychecks as […]
Read more
Be Aware of These Red Flags For Incorrect Employee Retention Credit (ERC) Claims The IRS is urging businesses that claimed the ERC pandemic-era credit to review their eligibility as a key deadline approaches.  Here are 7 ERC red flags to watch out for that could delay your claim: Claiming for too many quarters: Qualifying for […]
Read more
Remember that new independent contractor rule coming soon? It’s the one that makes it harder for businesses to call a worker a “contractor.” As a reminder, that big change kicks in March 11, 2024. Why should you care? More workers might become employees. This means benefits like minimum wage, health insurance eligibility, paid time off, […]
Read more
Running a business is exciting, but let’s face it, it comes with its fair share of risks.  That’s why Nextep is thrilled to partner with CoverWallet, bringing you exclusive access to comprehensive commercial insurance designed to keep your company safe and sound. Aon’s enhanced platform is powered by CoverWallet, a digital broker designed to make […]
Read more
What Businesses Need to Know Last week, we discussed collaborating with employees who request religious accommodations during Ramadan. This week, we’ll look at some of the nuts and bolts of religious accommodations at work and the impact of last year’s Supreme Court case, Groff v. DeJoy. The Groff v. DeJoy decision, as we covered when […]
Read more
Ramadan, the holy month of fasting and reflection for Muslims, begins on Sunday, March 10, 2024, and end on Tuesday, April 9. As an employer, understanding your Muslim employees’ needs during this time fosters a supportive and inclusive workplace.  It’s important to consider that rejecting flexible requests without a valid reason could be seen as […]
Read more
Workplace safety starts with good records. Every company must maintain records of worksite injuries and illnesses throughout the year. This recordkeeping is a legal requirement mandated by the Occupational Safety and Health Administration (OSHA). This quick guide simplifies the process, outlining your responsibilities. The Basics: Companies must document worksite injuries and illnesses for the entire […]
Read more
Big Change for Gig Work and More The Department of Labor (DOL) has revised its rules for classifying workers as independent contractors, making it more difficult for businesses to do so.  Effective March 11, 2024, this change impacts workers across the US and could have significant implications for businesses of all sizes. New rules make […]
Read more
Heads up, businesses! Beginning February 1, many workplaces must post a summary of work-related injuries and illnesses from the previous year. This simple one-page form, called the OSHA 300A, gives employees easy access to safety info specific to their worksite. Here’s the OSHA 300A rundown: Who needs to post? Companies with 11 or more employees […]
Read more
2023 and 2024 have seen several updates to federal law that impact your workplace labor posters. Are yours up to date? The new year allows you to check it out and avoid fines! Updates that affect your posters include (but are not limited to): PUMP Act for Nursing Mothers EEOC Pregnant Workers Fairness Act (PWFA) […]
Read more

Download Our App


Download the Nextep Mobile App in Apple iOS or Google Play