IRS Increases Applicable Dollar Amount for Calculating Patient-Centered Outcomes Research Institute Fees

Category: Client Update
Date: Oct 20, 2014 01:41 PM

The ACA includes a fee to help fund the Patient-Centered Outcomes Research Institute ("PCORI").  The fee is typically paid by health insurance issuers, but also applies to self-insured plan sponsors.  The fee is equal to the average number of lives covered during the plan year multiplied by the applicable dollar amount for the year.

The IRS recently announced an increase of this fee for plan or policy years that end on or after October 1, 2014, and before October 1, 2015.  The new PCORI fee amount is $2.08 for each covered life, an increase of 8 cents from $2.  It is likely that this fee amount per covered life will increase again next year.

For more information on PCOR fees and how to pay them, please refer to our blog post on the subject: http://www.lcwlegal.com/84751

The text of IRS Notice 2014-56 is available at: http://www.irs.gov/pub/irs-drop/n-14-56.pdf

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