The Affordable Care Act health care reform law requires plan sponsors of self-insured plans, including self-insured plans that cover retirees, to pay fees to support medical research for seven years, beginning with plan years ending on or after Oct. 1, 2012.
Key: Sponsors of insured plans who offer employees health reimbursement arrangements (HRAs) and certain health flexible spending accounts (FSAs) must also pay the fees.
Caution: The IRS has yet to determine whether plan assets can be used to pay the fees. Proposed regulations implement this provision of the law. You may rely on these proposed regs until final regs are issued. (77 F.R. 22691, 4-17-12)
A buck for research
The fee is:
- $1 per average number of covered lives for plan years ending on or after Oct. 1, 2012, and before Oct. 1, 2013
- $2 for plan years ending on or after Oct. 1, 2013, and before Oct. 1, 2014.
After that, the fee is inflation-adjusted.
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