New Tax for Self-Insured Clubs Due July 31

Published Monday, July 22, 2013
by Brad D. Steele

Under the health care law, there is a brand new tax that all clubs should be mindful of—the Clinical Effectiveness Research (CER) tax. Unlike the Employer Mandate, the implementation of the “CER tax,” has not been delayed.

This tax was created to help fund the Patient-Centered Outcomes Research Institute (PCORI), a private, nonprofit corporation created by the government that conducts research to evaluate and compare health outcomes and effectiveness of medical treatments, services, procedures, drugs, etc.

A club whose health plan ends on or after Oct. 1, 2012 will have to pay $1 per insured life on July 31, 2013.  If your club is self-insured, make sure you speak with your club’s accountant to meet this deadline and pay on time.

For those clubs that do not self-insure, this new tax will hit your club’s health insurance provider and be passed on to you. Though the fee is only $1 per covered life in 2012, $2 per covered life in 2013 and $2 plus an additional increase based on the projected per capita amount of National Health Expenditures for years 2014-2019, clubs will still need to budget for this expense.

For clubs that are self-insured, the fee is collected and reported on IRS Form 720 (Part 2) and, again, it is due on July 31, 2013 for the 2012 year. Each year thereafter, you will need to ensure the fee is paid by that July 31 deadline. The good news is the CER tax is only on the books for plan years ending after October 1, 2012 and before October 1, 2019.

For further information, please contact NCA’s Vice President of Government Relations and General Counsel, Brad D. Steele, at or at 202-822-9822.

Thank you for your ongoing support of NCA.




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