Under the Affordable Care Act (ACA), all medical plans are responsible for paying the Patient-Centered Outcomes Research (PCORI) fee to the IRS from October 2012 through September 30, 2019. The fee is calculated based on the number of plan participants. For insured medical plans, your insurance carrier will pay the fee on your behalf. If your company has a self-insured medical plan, you must file Form 720 and pay the fees directly to the IRS.
How Much will the PCORI Fee Increase?
The IRS recently issued Notice 2016-64, which stated that the applicable dollar amount to determine PCORI fees for plan years ending on or after October 1, 2016 and before October 1, 2017, will go from $2.17 to $2.26.
Employer Action Item
Please note the PCORI fee increase when filing Form 720. For plan year 2016, the form is due on July 31, 2017. More information on the fee can be found via our PCORI FAQ document here or the IRS website here.