It’s that time of year again for certain employers and insurance companies to pay the “Patient Centered Outcomes Research Fee.”
The fee is imposed on health insurance plans, and amounts to $2.08/participant.
In almost all cases for the typical small business that maintains health insurance for its employees, the insurance company will pay the fee and file the necessary forms.
Beware of HRAs
There is one place where small businesses can get caught needing to pay the fee, and that is if the business maintains a health reimbursement arrangement. In that case, the company needs to fill out a Form 720 and write a check to the government for $2.08 per person in the HRA.
Many HRAs are run through sole proprietorships who maintain the HRA for one employee (usually the proprietor’s spouse). But there are no exemptions for small employers.
Even though there’s only one participant in the HRA, the proprietor will still need to fill out Form 720 and pay a $2.08 fee.
The filing and payment are due by July 31st.
I’ve written about this extensively in the past. Here are some links to prior posts.
- Have an HRA? Deadline for Patient-Centered Outcomes Trust Fund Fee Looms (from July 15, 2014)
- Patient-Centered Outcomes Trust Fund Fee — An Exercise in Bureaucratic Futility (from July 19, 2013)
- Is the Patient-Centered Outcomes Trust Fund Fee Deductible as a Business Expense? (from July 16, 2013)
- Have an HRA? Make Sure to Pay Your “Patient-Centered Outcomes Trust Fund Fee” (from July 15, 2013)
“This blog post, along with comments that may follow, should not be considered tax advice. Before you make final tax or financial decisions, please secure a professional tax advisor to give you advice about your unique situation. To secure Jason as your accountant, please click on the ‘Services’ link at the top of the page.”