Under the Affordable Care Act, insurance companies (in the case of fully insured plans) and employers (in the case of self-insured plans) must pay an annual fee to help fund the Patient-Centered Outcomes Research Institute (PCORI) — commonly called the PCORI fee.
The fee is calculated by multiplying the average number of lives covered under the policy or plan by a dollar amount. The dollar amount is adjusted for inflation annually based on increases in the projected per capita amount of national health expenditures.
The IRS announced in Notice 2014-56 that the inflation-adjusted dollar amount is $2.08 for policy years and plan years that end on or after Oct. 1, 2014, and before Oct. 1, 2015. The prior amount was $2.
For more information about the PCORI fee, see Tax Flash 2013-07A and Tax Flash 2013-08.
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