By Pension and Benefits Editorial Staff
In Notice 2020-84, the IRS has provided the adjusted applicable dollar amount to be multiplied by the average number of covered lives for purposes of the fee imposed by Code Secs. 4375 and 4376 on the issuer of a specified health insurance policy for policy years and plan years that end after October 1, 2020, and before October 1, 2021. The fee helps fund the Patient-Centered Outcomes Research Institute (PCORI).
The applicable dollar amount that must be used to calculate the fee imposed for policy years and plan years that end on or after October 1, 2020, and before October 1, 2021, is $2.66.
The PCORI was created by the Patient Protection and Affordable Care Act. The fee originally set to expire on October 1, 2019, but was extended until 2029 by the Further Consolidated Appropriations Act, 2020.
SOURCE: Notice 2020-84, I.R.B. 2020-51, December 14, 2020.
Interested in submitting an article?
Submit your information to us today!Learn More