Friday, June 24, 2011

IRS seeking comments on comparative research fee

The Affordable Care Act established the Patient-Centered Outcomes Research Institute and provided that the institute be funded by the Patient-Centered Outcomes Research Trust Fund.  The Trust Fund is to be funded in part by fees to be paid by issuers of health insurance policies and sponsors of self-insured health plans. IRS Notice 2011-35 requests comments regarding how the fees to fund the institute should be calculated and paid, including several possible rules and safe harbors.

Section 6301 of the Affordable Care Act added sections to the IRC which impose fees on “specified health insurance policies” and “applicable self-insured health plans” based on the average number of lives covered under the policy or plan. The fees are effective for policy and plan years ending after September 30, 2012.

The Notice does not provide guidance but describes potential guidance that is expected to be proposed to implement the fees and seeks comments on the potential guidance.   

Comments must be submitted in writing by September 6, 2011.

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