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New Fees For Self-Insured Health Plans

The Patient Protection and Affordable Care Act

The Patient Protection and Affordable Care Act establishes a fee of $1 per covered life for self-insured health plans starting with fiscal years ending after September 30, 2012.

The rate increases to $2 the second year and is adjusted by the Department of Health and Human Services thereafter.

This new fee must be reported annually on Form 720 (Quarterly Federal Exise Tax Return) by July 31 of the calendar year immediately following the last day of the plan year.

Plans with years ending between October 1, 2012 and December 31, 2012 must file by July 31, 2013. Plans with fiscal years ending after December 31, 2012, must file by July 31, 2014.

Click here for the IRS Bulletin. If you have any questions please contact your engagement partner.

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