PCORI Fees for Self-Insured Plans due July 31

Employers that sponsor certain self-insured health plans are responsible for fees under the Affordable Care Act to fund the Patient-Centered Outcomes Research Institute (PCORI). The fees support research to evaluate and compare health outcomes and the clinical effectiveness of certain medical treatments, services, procedures, and drugs. 

As a reminder, the annual PCORI fee is due by July 31, 2017.

For plan years ending on or after October 1, 2015 and before October 1, 2016, the fee is $2.17 (multiplied by the average number of lives covered under the plan). For plan years ending on or after October 1, 2016 and before October 1, 2017, the fee is $2.26 multiplied by the average number of lives (employees and dependents) covered under the plan for the plan year.

Click here for a chart that outlines the applicable fees that must be paid in 2017 and 2018 based on the plan year start dates. 

How to Report and Pay the Fee

The IRS recently released the revised Form 720 (Quarterly Federal Excise Tax Return), which is the form used by plan sponsors of group health plans to report and pay the annual PCORI fee. (Please note that while Form 720 is filed quarterly for several other federal excise taxes, the PCORI fee is only required annually, on the second-quarter filing. Accordingly, if a plan sponsor files Form 720 only to report PCORI fees, a Form 720 should not be filed for the first, third, or fourth quarter.)

Below are the links to the Form 720 and corresponding instructions: 

http://www.irs.gov/pub/irs-pdf/f720.pdf

http://www.irs.gov/pub/irs-pdf/i720.pdf

  

If you have any questions or require assistance, please contact your IPS Advisors consultant. 

 
 

The information provided is for educational purposes only. This information is from sources we believe to be reliable, but we cannot guarantee or represent that it is accurate or complete. The opinions are those of the writer, and the opinions and information presented are subject to change without notice.

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