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Reminder: PCORI Filing and Fee Deadline Approaching

07/21/17

  05:36:00 pm, by MedBen5   , 327 words,  
Categories: News, Health Care Reform, Taxes, IRS

Reminder: PCORI Filing and Fee Deadline Approaching

IRS Building

As in years past, it's time for all self-funded employer health plan sponsors to file and pay the required Patient-Centered Outcomes Research Institute (PCORI) fee. While hope continues that payment of this fee may be suspended as part of the current Administration’s efforts to reduce the burden of Affordable Care Act (ACA) regulation on plan sponsors, to date that has not happened. This means that PCORI fees must be reported and paid to the Internal Revenue Service (IRS) no later than July 31, 2017.

All self-funded plan sponsors are required to pay a fee based on the average number of covered lives under their eligible plans – including employees, retirees, spouses and dependents. Plans subject to the requirements include self-funded medical benefit plans, such as ERISA and non-ERISA self-funded plans as well as retiree-only plans. Other self-funded plans subject to the fee include self-funded HRAs and FSAs which are not integrated with a plan sponsor’s self-funded major medical plan. Dental-only, vision-only, EAP, disease management, and wellness plans are exempt from the fee requirement.

All plan sponsors must use the IRS Form 720 dated April, 2017 to record and remit the amount due. This year, the form has again been modified to include the payment amounts due under the schedule shown below. Make sure to complete the correct section of Part II for “Applicable self-insured health plans” (line 133) and select the correct payment amount based on your plan’s year end date (line 133 (a) or (b)).

This year’s payment schedule is below. If your plan year ended on October 31, 2016, November 30, 2016 or December 31, 2016 you will owe $2.26 per covered life. All other plan years owe $2.17 per covered life. Remember, a “covered life” means each and every individual you have covered under an applicable plan (i.e., employee, retiree, spouse, and dependents).

MedBen clients who need more information about how to count covered lives under their plan or how to prepare and remit your payment, don’t hesitate to contact Vice President of Compliance Caroline Fraker at 800-851-0907 or cfraker@medben.com.

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