Health Care Reform

Summary: PPACA Fees, Contributions and Taxes

Description PCOR Reinsurance HIT
What & When Annual fee on plans from 2013-2019 3-year annual fee on plans (2014-2016) Permanent annual fee on health insurers
Purpose Fund outcomes-based research for clinical effectiveness Fund reinsurance program for state exchanges Help fund federal and state exchanges and PPACA implementation
Who Pays Fully Insured: Insurer Self-insured: Employer Fully Insured: Insurer Self-insured: Employer Insurers
How Much $2.08 per covered life in 2015 ($2 per covered life in 2014) $44 per covered life in 2015 ($63 per covered life for 2014) $8 billion apportioned among insurers (Increases each year)
How Paid Self-reported on IRS Form 720 Report filed Nov. 14 Payment due Jan. 15 Report on IRS Form 8963 Paid after IRS Assessment
Tax Treatment Tax deductible Tax deductible Not tax deductible
Types of Plans Major medical, continuation coverage, retiree-only, HRA, non-excepted FSA, prescription Major medical, continuation coverage, retiree-only, non-excepted FSA, non-integrated HRA Major medical, stand-alone dental/vision, retiree-only coverage
Notable Plan Type Exclusions Stand-alone dental/vision, excepted FSA, HSA Stand-alone dental/vision, HRA, HSA, integrated HRA, prescription drug Voluntary, fixed-indemnity, supplemental, specified disease/illness, stop-loss

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