PCORI Fees Due by August 1st for Employers Sponsoring HRAs and Other Self-Insured Plans

As a reminder, fees to fund the Patient-Centered Outcomes Research Institute (PCORI) are due no later than August 1, 2016 from employers who sponsor certain self-insured health plans, including health reimbursement arrangements (HRAs) that are not treated as excepted benefits. Under Health Care Reform, PCORI fees are imposed for each plan year ending on or after October 1, 2012, and before October 1, 2019.

How to Calculate the Fee

For plan years ending on or after October 1, 2015 and before October 1, 2016, the fee for an employer sponsoring an applicable self-insured plan is $2.17 ($2.08 for plan years ending on or after October 1, 2014 and before October 1, 2015) multiplied by the average number of lives covered under the plan.   Permissible methods for determining the average number of lives covered under a plan are explained in IRS guidance.

Reporting and Payment Deadline

In general, plan sponsors of applicable self-insured health plans are required to report and pay the fee no later than July 31st of the calendar year immediately following the last day of the plan year to which the fee applies. However, because July 31st falls on a Sunday this year, the due date is August 1, 2016. Fees are reported and paid using IRS Form 720Quarterly Federal Excise Tax Return.

Our section on PCORI Fees for Self-Insured Plans  within the Client Resource Center HR Library provides more information.

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