Patient-Centered Outcomes Research Institute Fee

Posted on Posted in Health and Welfare Compliance, IRS Reporting

Your PCORI fee is due by July 31, 2018

On October 5, 2017 the Internal Revenue Service issued Notice 2017-61 increasing the PCORI fee from $2.26 to $2.39 effective for plan years ending on or after October 1, 2017 and before October 1, 2018.

The PCORI fee is $2.39 per covered life for plan years ending on or after Oct. 1, 2016 and before October 1, 2017, and must be reported on and remitted with IRS Form 720 by July 31, 2018.  For self-funded plans, the employer/plan sponsor will be responsible for submitting the fee and accompanying paperwork to the IRS.

NOTE: Third-party reporting and payment of the fee is not permitted for self-funded plans. If your group health plan is fully insured and you have a Health Reimbursement Arrangement (HRA), a PCORI payment will be required on the HRA

PCORI Fee Reporting and Payment

The IRS will collect the fee from the insurer or, in the case of self-funded plans, the plan sponsor in the same way many other excise taxes are collected. The fees are reported and paid annually on IRS Form 720 by July 31 of the year following the last day of the plan year. 

The fee due on July 31, 2018 is $2.39 per covered life for plan years ending after Oct. 1, 2017, and before Oct. 1, 2018. For plan years ending before Oct. 1, 2017, the fee is $2.26 per covered life under the plan. To determine the average number of covered lives, you may use the actual count, snapshot or Form 5500 method.

For Relph Benefit Advisors clients enjoying the Relief of R-Solution, we are calculating your PCORI fee using the snapshot method, the results of the calculation will be sent to you prior to the filing date so you may complete your IRS submission.  

If you should have any questions, please do not hesitate to reach out to your Senior Benefit Consultant or myself directly at 1-800-836-0026 x230 or 585-415-0448 or email at lallen@relphbenefitadvisors.com.

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