IRS Announces Updated PCORI Fee Amount

Volume 40 | Issue 119

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The IRS has announced that the amount used to calculate the PCORI fee for plan years that end on or after October 1, 2017, and before October 1, 2018, including 2017 calendar year plans, is $2.39 per covered life.

Background

The ACA imposes a fee on health insurers and plan sponsors of self-insured group health plans to help fund the Patient-Centered Outcomes Research Institute (PCORI). The PCORI fee was first assessed for plan years ending after September 30, 2012. The fee for the first plan year was $1 per covered life, increasing to $2 per covered life in the second year, and then indexed in subsequent years based on the increase in national health expenditures. The PCORI fee will not be assessed for plan years ending after September 30, 2019, which means that for a calendar year plan, the last year for assessment will be the 2018 calendar year.

PCORI Fee

The IRS announced in Notice 2017-61 that the amount used to calculate the PCORI fee payable for plan years that end on or after October 1, 2017, and before October 1, 2018, including 2017 calendar year plans, is $2.39 per covered life. Plan sponsors must pay the PCORI fee by July 31 of the calendar year immediately following the calendar year in which the plan year ends. All plan sponsors of self-insured group health plans will pay the PCORI fee in 2018, but the amount of the fee paid will vary depending on when the plan year ends.

Plan Year Ending in 2017 Fee per Covered Life for July 31, 2018 Payment
Plan years ending on or after October 1, 2017, through December 31, 2017, including calendar year plans $                       2.39
Plan years ending on or after January 1, 2017, through September 30, 2017 $                       2.26

 

ACA Indexed Dollar Amounts

The table below summarizes the ACA indexed dollar limits for 2018 and prior years.

ACA Indexed Dollar Amounts
  Out-of-Pocket Maximums (1,5) PCORI
Fee
(2,5)
Transitional Reinsurance Fee (6) Health FSA Salary Reduction Cap (3,5) Employer Shared Responsibility Annual Assessments (1,4,6,7,8)
Self-Only Other Than
Self-Only
4980H(a) – Failure to Offer Coverage 4980H(b) – Failure to Offer Affordable, Minimum Value Coverage Affordability Threshold Under 4980H(b)
2018 $ 7,350 $ 14,700 Not available              N/A Not available $ 2,320 (Est.) $ 3,480 (Est.) 9.56%
2017 $ 7,150 $ 14,300 $          2.39              N/A $        2,600 $        2,260 $        3,390 9.69%
2016 $ 6,850 $ 13,700 $          2.26 $             27 $        2,550 $        2,160 $        3,240 9.66%
2015 $ 6,600 $ 13,200 $          2.17 $             44 $        2,550 $        2,080 $        3,120 9.56%
2014 $ 6,350 $ 12,700 $          2.08 $             63 $        2,500 $        2,000 $        3,000 9.50%
2013      N/A      N/A $          2.00              N/A $        2,500              N/A              N/A           N/A
2012      N/A      N/A $          1.00              N/A              N/A              N/A              N/A           N/A

 

Notes:

  1. Indexed to increase in average per capita premium for US health insurance coverage in prior calendar year. Out-of-pocket maximum does not apply to grandfathered plans or retiree-only plans
  2. Indexed to increases in national health expenditures
  3. Indexed for CPI-U
  4. One-twelfth of annual amount assessed on monthly basis. No assessments for 2014
  5. Applicable dollar amount affected by when plan year ends
  6. Applies on a calendar year basis
  7. 2017 and 2018 assessment amounts have not been released. Estimate based on increase in average per capita premium for US health insurance coverage as determined by HHS
  8. Affordability threshold adjusted consistent with 36B(b)(3)(A)(i)

N/A – Not applicable