The IRS today released an advance version of Notice 2018-85 announcing that the dollar amount to be used for purposes of determining the fee (excise tax) imposed by sections 4375 and 4376 for policy years and plan years that end on or after October 1, 2018, and before October 1, 2019, is $2.45.
Read Notice 2018-85 [PDF 41 KB]
Sections 4375 and 4376 impose the Patient-Centered Outcomes Research Institute (PCORI) fee on issuers of a health insurance policy and on plan sponsors of applicable self-insured health plans for each plan year ending after September 30, 2012, and before October 1, 2019.
The fee imposed by sections 4375 and 4376 is calculated using the average number of lives covered under the policy or plan, and the applicable dollar amount for that policy year or plan year. The fee is reported and paid with a Form 720, Quarterly Federal Excise Tax Return, filed each July and based on the number of lives covered.
For policy years and plan years that end on or after October 1, 2017, and before October 1, 2018, the amount was $2.39.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.