Tag: PCORI

Employers that self-insured any group health plans in 2017, including health reimbursement arrangements (HRAs), are responsible for determining whether the annual PCORI fee applies to their plan. If so, use Form 720 to calculate, report, and pay the fee by July 31, 2018. PCORI stands for the Patient-Centered Outcomes Research Institute. Federal law imposes a…

On October 6, 2017, the Internal Revenue Service (IRS) released Notice 2017-61 to announce that the health plan Patient-Centered Outcomes Research Institute (PCORI) fee for plan years ending between October 1, 2017 and September 30, 2018 will be $2.39 per plan participant. This is an increase from the prior year’s fee of $2.26 due to…

Question: Is a tax-exempt employer required to file Form 720? Answer: The company’s tax status typically does not matter when it comes to filing IRS Form 720 to report the Patient-Centered Outcomes Research Institute (PCORI) fee. Because we are not tax advisors, we recommend that you consult with your tax counsel to determine if exemption…

Question: We forgot to file and pay our Patient Centered Outcomes Research Institute (PCORI) fee last year; how can we correct this? Answer: We cannot provide tax advice as this is not our area of expertise. We recommend consulting with a professional tax advisor prior to relying on this information. However, as general information our…

Question: How much and when do we pay for the PCORI fee for our self-funded health plan? Answer: The Affordable Care Act imposes the Patient-Centered Outcomes Research Institute Fee (PCORI) on issuers of certain health insurance policies and plan sponsors of applicable self-insured health plans to help fund the Patient-Centered Outcomes Research Institute. The fee is based…

Question: Does a large group employer have to pay PCORI fees on a medical expense reimbursement plan (MERP) for their employees and if so, is it based on participants or enrolled employees? Answer: Health reimbursement arrangements (HRAs) and medical expense reimbursement plans (MERPs) are self-funded group health plans and are subject to the PCORI fee unless…

Question:  Should Self-Funded plans that have been consolidated on one 5500, which covers the calendar year with plans with varying start and end dates, be filed all together for PCORI or filed separately according to each of their plan year start dates? Answer:  It is our understanding that the PCORI fees are based on plan…

The following question recently came from one of our clients requesting our assistance to better understand and manage this issue. Question:  We would like clarification regarding the PCORI fees that are due July 31st.  What plan years apply to this year’s payment and how do we count the total amount due?  Answer: We have had a number…

Question: For a self-insured client with a 12/1/12 plan year renewal date, do they have to pay the CER fee on July 31, 2013 on IRS form 720? Or should the fee be paid sooner, since the plan year begins prior to the start of the fiscal year? Answer: Our understanding is that the PCORI…