By now, it's been well documented that the employer mandate compelling large employers to offer employee benefits to their workers has been delayed until January 2015. But what hasn't been as widely publicized is the fact that many of these same business owners may need to pay for a healthcare fee in the meantime.
Before July 31, many business owners may need to file what's known as a PCORI fee. These fees help pay for the Outcomes Research Institute that was established by the federal government when the Affordable Care Act became law in 2010. It was developed to help all consumers understand the healthcare law so that they can make more informed decisions about the coverage they need.
In late May, the Internal Revenue Service released a revised Form 720 that explains where insurers and employers who provide health coverage to their workers report and pay for the PCORI fee. As a general rule, fully insured plans are paid by the health insurance carrier while self-funded plans are paid by the employer.
Though the first filing due date is just around the corner on July 31, this is not the deadline for all business owners and carriers. The fee filing deadline depends on the date in which plans end. Thus, if a business' health insurance policy for their workers end at any point this year, they won't have to file until the end of July 2014. But, if plan years expired in the fourth quarter of 2012, a Form 720 must be filed with the accompanying PCORI fees by July 31 of this year.
For more information, speak to a Howell Benefit Services professional or download the following document.
