Obamacare will begin costing employers a fair amount of money, $1 at a time, beginning this summer, the CliftonLarsonAllen consultancy is advising credit unions.
Beginning July 31, employers who offer various benefit plans must pay the equivalent of $1 per covered life per year to fund the Patient-Centered Outcomes Research Institute, which was established by the Patient Protection and Affordable Care Act.
The IRS has ruled that issuers and plan sponsors are responsible for the fee, and that it will be treated like an excise tax, CliftonLarsonAllen said.
“Even though this fee may seem insignificant, this is one of many fees that will increase the cost to provide insurance to employees under the PPACA,” said Anita Baker, employee benefit plans managing partner at the Milwaukee- and Minneapolis-based nationwide accountancy and professional services network.
The PCORI is a 19-member panel of medical industry experts charged with examining the effectiveness of medical treatments and prioritizing and funding comparative effectiveness research for Medicare and Medicaid.