Employers with self-insured health plans must pay the annual fee by July 31
The annual fee to fund the Patient-Centered Outcomes Research Institute (PCORI), paid by employers that sponsor self-insured health plans, will rise next year by an additional 9 cents per plan enrollee. Fully insured and self-insured plans providing accident or health insurance for individuals living in the U.S. are subject to the fee.
IRS Notice 2016-64, issued on Nov. 4, provides that the PCORI fee for plan years ending on or after Oct. 1, 2016, and before Oct. 1, 2017, including 2016 calendar year plans, is $2.26 per each person covered, up from $2.17 for the previous plan year.
Paying PCORI Fees
For self-funded plans, the self-insured employer/plan sponsor is responsible for submitting the fee and accompanying paperwork to the IRS. Third-party reporting and payment of the fee is not permitted for self-funded plans.
Employers subject to the fee must submit it by July 31 of the year following the last day of the plan year. For the coming year, self-insured health plan sponsors should use Form 720 for the second calendar quarter to report and pay the PCORI fee by July 31, 2017.
If you have questions regarding the PCORI fees, call 1.800.250.2741 or email us at firstname.lastname@example.org.