Information from our partner Cigna
The ACA imposes an annual fee called the Comparative Effectiveness Research Fee (CERF) on insurers and plan sponsors of self-insured coverage.
What is CERF?
- The fee is based on the average covered lives for the applicable 12-month policy or plan year.
- It is paid using IRS Form 720 by July 31 each year for the plan year that ended in the preceding calendar year.
- Employers must use their ERISA plan year if it is different from the renewal date.
Fees for 2018 are:
Who is Responsible for Paying?
- Typically the insurer pays for the fee for insured plans and it is built into the premiums.
- Health Reimbursement Accounts (HRAs) and certain Flexible Spending Accounts (FSAs) are considered self-funded group health plans. Typically the insurer will pay the fee for the underlying medical policy only; employees/insured are responsible for the HRA/FSA related fee.
- Self-funded plans must calculate and pay their own fee.
2018 CERF payments are due 7/31/18
Should you have any questions, please reach out to your FosterThomas benefits account manager or customer service representative.
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