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Patient-Centered Outcomes Research Institute (PCORI) Fee

July 10, 2013

Business owners who are self insured or offer a HSA, FSA or HRA could fall under new rules.

The Patient-Centered Outcomes Research Institute “PCORI” fee may come as a surprise to some employers since much of the attention was centered on the “employer mandate” portion of the Affordable Care Act. Although the “employer mandate,” was delayed until 2015, the PCORI fee is due on or before July 31, 2013 for plan years ending October 1, 2012 and thereafter.

The Patient-Centered Outcomes Research Institute (PCORI) which was authorized by Congress as part of the healthcare law, performs medical research. Funding for this research is provided, in part, by the new fee.

The idea behind the research (and the fees funding it) is that it will help patients, doctors and others make better health choices, which will eventually lower overall healthcare costs.

Although the fee is small, it does add compliance and filing burdens including the usual penalties for failure to file and failure to pay taxes such as Form 720. For more details on which plans fall under this requirement, the fee amounts, and how to calculate them - read our article titled “New Filing Requirement As Part of the Affordable Care Act- Form 720 Due July 31st” or visit our Healthcare Overview for the latest updates and watch our recent Healthcare webinar series.

These rules are new and the definitions are complex. If you have any questions or need additional guidance, please contact Norman LeBlanc, CPA or Loree Dubois, CPA at 888-857-8557.

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