If your company offers a Zane Plan you may be required to fill out Form 720 annually and pay the Patient-Centered Outcomes Research Institute (PCORI) fee.
What is the research fee and Form 720?
The Affordable Care Act (ACA) includes a research fee that plan sponsors must pay on an annual basis. According to the ACA, this fee will be used to fund governmental research.
- The ACA imposes this fee on Zane plans, which fall under the "self-insured health plans" definition. The types of plans that must pay these fees are those not integrated with another applicable self-funded medical plan (with the same plan year).
- The research fees apply to plan years ending on or after October 1, 2012 and before October 1, 2019.
- You are required to report and pay fees annually via Form 720, due by July 31 of each year (see below).
How much is the research fee?
The fees are due on July 31 of the calendar year immediately following the last day of the plan year, to which the fee applies. The fee will be adjusted for each Plan Year's ending, as follows:
- October 1, 2012 – September 30, 2013: $1 multiplied by the average number of lives
- October 1, 2013 – September 30, 2014: $2 multiplied by the average number of lives
- October 1, 2014 – September 30, 2015: $2.08 multiplied by the average number of lives
- October 1, 2015 and beyond: to be determined
If you currently file Form 720, the fee will be paid with your second quarter return. If you do not file Form 720, file only the return for the second quarter (not quarterly).
IRS Reporting Tools
Your online administrator account includes a reporting feature that makes all data for Form 720 automatically available to you.
From your online administrator account go to Reports > IRS Reporting Tools.