According to Cigna, 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. As a reminder, employers must use their ERISA plan year if it is different from the renewal date.
Who pays for the fees exactly? Insurers pay for insured plans. Employers pay for self-insured plans. How much are the fees? Initial annual fee of $1 per average covered life.
For more information on the Comparative Effectiveness Research Fee contact Cosmo or visit Cigna’s toolkit here.
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