PCORI Fee Deadline Fast Approaching
If you sponsor a self-insured group health plan (or a health reimbursement account), make sure you’ve set a calendar alert for July 31 to pay the annual PCORI fee (Patient-Centered Outcomes Research Institute fee) for the 2020 plan year. The fee and the related IRS Form 720 are due no later than July 31st (note that July 31 falls on a Saturday in 2021). The updated form can be found here, and the PCORI fee reporting can be found in Part II, Line 133.
As a reminder, the PCORI fee was put into place by the ACA to help fund the Patient Outcomes Research Institute and is based on the average number of covered lives under the plan. Although originally set to expire after 2019, the SECURE Act extended the PCORI fee for another 10 years, meaning most plans will be responsible for the PCORI fee until 2029.
If your plan year ended on or before September 30, 2020, the fee is $2.54 per covered life. If your plan year ended between October 1 and December 31, 2020, the fee is $2.66 per covered life. Remember, covered lives include spouses, dependents, retirees, and COBRA beneficiaries. If you have not been through this process before, or if you just need a quick refresher, the IRS has issued detailed guidance on the multiple methods you may use to calculate the PCORI fee, as well as instructions for completing the Form 720 and submitting your payment.
Should you have any questions about the PCORI fee or any benefits related issues, please contact any of the Graydon employee benefits team.