IRS Releases Proposed Regulations Regarding Fees Imposed on Health Insurers and Health Plan Sponsors to Fund Patient-Centered Outcomes Research Trust Fund

On April 17, 2012, the Internal Revenue Service (IRS) published proposed regulations implementing and providing guidance on the fees imposed by the Patient Protection and Affordable Care Act (the Affordable Care Act) on the issuers of specified health insurance policies and the plan sponsors of applicable self-insured health plans to fund the Patient-Centered Outcomes Research Trust Fund (the “Trust Fund”) (hereinafter, the “fee” or “fees”). The Affordable Care Act established the Patient-Centered Outcomes Research Institute, and the Trust Fund is a funding source for this Institute. While the fees are imposed on employers sponsoring self-insured health plans and the issuers of the policies for fully-insured health plans, this bulletin focuses on the application of the proposed regulations to employers sponsoring self-insured health plans.

The bulletin below provides more information on the proposed regulations, including:

Applicable self-insured health plans for purposes of the fee;
Calculating the average number of covered lives; and
Reporting and payment of fees on IRS Form 720.