The Affordable Care Act has established a new annual fee, imposed on group health plans, which will be used to fund the Patient Centered Outcomes Research Institute. The amount of the fee is $1 times the average number of individuals covered under the plan for the first year, then $2 times average covered individuals thereafter. If a health plan is insured, then the fee is paid by the insurer; if the health plan is self funded, the plan sponsor is responsible for the fee. The fee is self reported on IRS Excise Tax Form 720.
The fee and the filing are both due on July 31 immediately following the last day of the policy or plan year and the requirement is effective for policy and plan years ending after September 30, 2103 and before October 1, 2014. For most plans and policies, including calendar year plans and policies, the first fee is due July 31, 2013.