June 26, 2014
A recent CliftonLarsonAllen (CLA) newsletter notes all employers that sponsor a self-insured health plan have until July 31, 2014, to file Form 720 and make their excise tax payment.
The fee was established by the Patient Protection and Affordable Care Act to fund the Patient-Centered Outcomes Research Institute (PCORI), a new initiative to improve health decisions by advancing comparative clinical effectiveness research, CLA says.
Self-insured plans with a plan year ending during 2013 are required to file by July 31, 2014. This is the first year that plans with a plan year ending between January 1, 2013, and Sept. 30, 2013, will need to file. CLA says because the effective date of the filing requirement started with plan years ending on or after Oct. 1, 2012, many plans will be filing for the first time in 2014.
For plans with a plan year ending between Oct. 1, 2013, and Dec. 31, 2013, CLA says this will be the second year they have to file and the fee has increased. The company says employers should start gathering information to determine what their PCORI fee is this year and to meet their filing deadline.
For more information, check out CLA’s newsletter.