The Cadillac Tax is officially out – but the PCORI Fee is here to stay for another decade.
On December 20, 2019, President Trump signed into law H.R. 1865, the “Further Consolidated Appropriations Act, 2020.” This $1.4 Trillion spending legislation included the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), which can be recapped in our previous blog. It also repealed three Affordable Care Act (ACA) related taxes, one of those being the official repeal of the Cadillac Tax.
The legislation also extended the Patient-Centered Outcomes Research Institute Fee (PCORI fee) for another ten years, which the ACA established to fund medical research through the fees paid by health insurers and employers sponsoring self-insured health plans. Prior to this extension, it applied to policy or plan years ending on or after October 1, 2012, and before October 1, 2019.
Although we believed this fee to be over, these insurers and employers must continue to pay the PCORI fee until 2029 (or 2030 depending on the type of plan year).
The information and content contained in this blog post are for general informational purposes only, and does not, and is not intended to, constitute legal advice.