Calculating and Paying the Comparative Effectiveness ResearchFeeThis is the thirty-ninth issue in ourhealth care reform series of alerts for employers on selected topicsin health care reform.
(Our general summary of health care reformand other issues in this series can be accessed by clicking here.)This series of Health Care Reform Management Alerts is designed toprovide a more in-depth
analysis of certain aspects of health carereform and how it will impact your employer-sponsored plans.The Affordable Care Act imposes a “comparative effectivenessfee,” on all insurers and sponsors
of group health plans, for planyears ending on or after October 1, 2012 (meaning calendaryear plans are subject to the fee starting in 2012). The fee, whichis intended to pay for governmental research
comparing the clinicaleffectiveness of various medical treatments, amounts to $1 percovered life in the first year, and $2 per covered life in eachsubsequent year. (The fee sunsets in 2018). Recently
proposed IRSregulations clarify how to determine what types of coverage triggerthe fee, how to calculate covered lives, and how to pay the fee.While the fee is assessed against insurers (for
fully-insured plans)and plan sponsors (for self-funded plans), this alert focuses on thelatter.ReadFull AlertMay 9,2012DownloadAlert as PDFVisit HealthCare Reform TeamSubscribe to Mailing
ListsSubscribe to RSS FeedContactSeyfarth AttorneyAdvertising. This Health Care Update is a periodical publication ofSeyfarth Shaw LLP and should not be construed as legal advice or a
legalopinion on any specific facts or circumstances. The contents are intendedfor general information purposes only, and you are urged to consult alawyer concerning your own situation and any specific
legal questions youmay have. Any tax information or written tax advice contained herein(including any attachments) is not intended to be and cannot be used byany taxpayer for the purpose of avoiding
tax penalties that may be imposedon the taxpayer. (The foregoing legend has been affixed pursuant to U.S.Treasury Regulations governing tax practice.) Copyright © 2012 SeyfarthShaw LLP. All rights
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