Effective 2024, MSRS no longer pays the PCORI fee
Justification:
There is no language in the Affordable Care Act (ACA) requiring the HCSP to pay this fee.
Starting in 2013, MSRS chose the conservative approach to follow this new requirement and paid PCORI fees in the amount prescribed by the IRS. In 2023, after additional review of the requirements, MSRS determined the fee requirement does not apply to the HCSP. The MSRS Board of Directors approved the change in November, 2023.
Background
The ACA imposes a Patient-Centered Outcomes Research Institute (PCORI) fee on issuers of specified health insurance policies and plan sponsors. This fee was created to support clinical effectiveness research.
The fee was originally scheduled to end in 2019. However, it was extended for another 10-year period.
The fee is equal to the average number of lives covered during the policy year or plan year multiplied by the applicable dollar amount for that year. For example:
• 2013 - $1.00
• 2014 - $2.00
• 2015 – $2.08
• 2016 – 2022, the applicable dollar amount is adjusted to reflect inflation in National Health
Expenditures, as determined by the Secretary of Health and Human Services.