Employers Self-Insured or with a HRA or MERP
PCORI Fees are Due by July 31, 2018
The Affordable Care Act (ACA) established a private, non-profit corporation called the
Patient-Centered Outcomes Research Institute
to conduct comparative clinical effectiveness research. Under the ACA, health insurance carriers and plan sponsors are required to pay fees to help finance the Institute's research. These fees are widely known as PCORI fees. These fees are in effect for plan years ending on or after October 1, 2012 and before October 1, 2019.
Who has to pay PCORI Fees?
- Plan sponsors of a Self-Insured Medical Plan
- Plan sponsors of a Health Reimbursement Arrangement (HRA)
- Plan sponsors of a Medical Expense Reimbursement Plan (MERP)
- Health Insurance Carriers
How much do PCORI Fees Cost?
For plan years ending:
- October 1, 2016 through September 30, 2017 --- $2.26 per covered life
- October 1, 2017 through September 30, 2018 --- $2.39 per covered life
Covered lives include covered spouses and dependents. The October 2018 through September 2019 fee amount will grow based on increases in the projected per capita amount of National Health Expenditures.
How do I Pay the Fee?
Plan sponsors are required to pay PCORI fees annually by filling in Part II on
IRS Form 720
by July 31 of each year. For instructions on how to fill out and submit the form, go to the
IRS Form 720 Instructions
and scroll to page 8.