If your business sponsors self-insured health plans, you need to be aware that there is a new filing and fee requirement for 2014 that has been created by the Affordable Care Act (ACA). The fees collected under this provision of the ACA are used to fund the Patient-Centered Outcomes Research Institute and are referred to as the PCORI fee.

The PCORI fee is due July 31st of the year following the last day of the plan year. So for plans year ending on December 31, 2013 the due date, July 31, 2014, is impending. Failure to comply with these payment requirements by the deadline may result in penalties.

The PCORI fee is imposed on any “applicable self-insured health plan,” which the IRS generally defines as any plan that provides accident or health coverage if any portion of the plan’s coverage is provided other than through an insurance policy and such plan is established or maintained by employers or employee organizations. However, there are certain kinds of self-insured health plans that are exempted because they are not considered “applicable self-insured health plans.”

Calculating the amount of the PCORI fee a given sponsor is responsible for can be complex, and there are three distinct methods to do so. Clients who know, or who believe they may be responsible for PCORI fees are urged to contact the healthcare tax and accounting specialists with MBAF before the impending deadline of July 31st.

Taxation and compliance issues regarding the Healthcare industry, especially since the passage of the Affordable Care Act, (ACA) can be quite complex. If you would like to benefit from our expertise in these areas or if you have further questions on this Advisory, or the ACA, do not hesitate to contact our Healthcare specialists, or call us at 1-800-239-1474.