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:

    CERF Fees 2018

    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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