The Patient-Centered Outcomes Research Institute (PCORI) fee is for Employers with self-insured health plans, Flexible Spending Account and/or reimbursement programs. This PCORI fee must be filed before July 31, 2018 with IRS form 720.
The Affordable Care Act imposes an annual fee called the Comparative Effectiveness Research Fee (CERF) on insurers and plan sponsors of self-insured coverage to help fund the Patient-Centered Outcomes Research Institute (PCORI). FSA’s and HRA’s are also considered self-insured health plans affected by this fee. Self-Insured health plans pay the ‘average number of people’ on the health plan.
Note: Fully-Insured health plans are NOT subject to the fee as the carrier pays this annual fee on your behalf. However, if you offer a Flexible Spending Account (FSA) or a Health Reimbursement Arrangement (HRA) along side your Fully-Insured health plan then you are required to pay this annual fee. In this case, you would only be responsible for the ‘average number of employees’ participating on either of these plans since the carrier is paying per person on the health plan.
The annual payment is due July 31, 2018. This corresponds with the second quarter filing dates per the IRS instructions. Links to the revised form and IRS instructions are below. Plan sponsors can file Form 720 electronically, but to do so, they must submit Form 720 through an approved transmitter and pay applicable service fees.
|Plan Year Start Date||Fee Per Average Covered Life|
|Feb. 1, 2016–Oct. 1, 2016||$2.26|
|Nov. 1, 2016–Jan. 1, 2017||$2.39|