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Employers that sponsor a self-insured health plans must submit their Patient-Centered Outcomes Research Institute (PCORI) fees to the Internal Revenue Service by July 31, 2024. Plan sponsors need to calculate their PCORI fee and complete the second quarter Form 720 (Quarterly Federal Excise Tax Return).
The PCORI fee is calculated using the average number of lives covered under the plan and the applicable dollar amount for that plan year. The applicable dollar amount for calculating the PCORI fee for plan years ending on or after October 1, 2023, and before October 1, 2024, is $3.22. The PCORI fee must be paid by the plan sponsor – so employers cannot use plan assets or employee contributions to pay the fee.
In addition to self-funded group health plans, the PCORI fee applies to certain Health Reimbursement Arrangements (HRA), including a premium only HRA, as well as health care Flexible Spending Arrangements (FSA), unless the FSA is treated as an excepted benefit (i.e., it is limited to vision and dental expenses).
If you have any questions, please contact any of Pullman & Comley's Employee Benefits practice group attorneys.
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Alerts, commentary, and insights from the attorneys of Pullman & Comley’s Labor, Employment Law and Employee Benefits practice on such workplace topics as labor and employment law, counseling and training, litigation, union issues, as well as employee benefits and ERISA matters.