PCORI Fee Due by July 31, 2018

Volume 41 | Issue 44

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The deadline for paying ACA’s PCORI fee is approaching. Sponsors of self-insured health plans should prepare to report and pay the fee by July 31, 2018.

Background

The ACA requires sponsors of self-insured health plans and health insurers to pay a fee to help fund the Patient Outcomes Research Institute (PCORI). PCORI conducts research to evaluate and compare the health outcomes and clinical effectiveness, risks and benefits of medical treatments, services, procedures and drugs.

The fee, paid to the IRS, applies to plan years (and policy years) ending after September 30, 2013 and before October 1, 2019. The amount of the fee is based on the average number of lives covered under the plan. (See our January 23, 2013 For Your Information.)

End of the PCORI fee
The PCORI fee for a plan year is due by July 31 of the calendar year immediately following the last day of such plan year. Because the PCORI fee only applies to plan years (and policy years) ending before October 1, 2019, the final PCORI fee payment for sponsors of calendar year plans (for the 2018 plan year) will be due by July 31, 2019.

Applicable PCORI Fee Amounts

The fee for plan years ending in 2017 is due by July 31, 2018. The amount of the fee per covered life depends on when the plan year ends.

Plan Year Fee Per Covered Life
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

 

In Closing

Plan sponsors should use Form 720 and follow the related instructions to report and pay the PCORI fee.