By now you have probably heard about the one-year delay to certain aspects of the Affordable Care Act (ACA). But beware! The other elements of the law are going into effect soon and there is one that may have sneaked past you – a new filing and fee due July 31, 2013.
One of the items in the ACA that hasn’t been delayed is a new patient-centered outcomes research fee imposed on issuers of health insurance and plan sponsors of self-insured health plans. The fee is fairly minor – $1 per life insured, using an average number of lives for the plan year. The fee applies to health insurance issuers (companies that sell insurance for a living) and self-insured plan sponsors (a fair number of businesses) with a plan year ending on or between Oct. 1 and Dec. 31, 2012. So what does this mean?
– For self-insured companies with plan years ending between Oct. 1 and Dec. 31, 2012, the fee is due July 31, 2013, and is submitted with IRS form 720.
– Self-insured companies with plan years ending before Oct. 1, 2012, or after Dec. 31, 2012, will need to pay by July 31, 2014, using the 720 form.
– If you are a company that buys insurance from an insurance company, they are paying the fee on your behalf and will increase your prices accordingly (you don’t have to file form 720 for this fee).
This fee is around for the next couple years, so be sure to mark your calendars!
Health Care Reform Help
Though some parts of the ACA are delayed, there are still many items that are going into effect as planned—and soon. Time is of the essence, so if you need help, get it today! Contact Rea & Associates. Our Ohio tax professionals can help you make of the most of the time you have and help you figure out when you need to pay your patient-centered outcomes research fee.