Compliance Corner: Don’t Forget to Pay Your PCORI Fee!
We interrupt your regularly scheduled Compliance Corner to bring you a COMPLIANCE ALERT! to remind customers about the PCORI filing and fees due by July 31, 2022.
Who
Employers with health reimbursement accounts, self-funded pans, or level-funded plans.
Note: Even if you have a fully insured plan, if you offer a health reimbursement account (HRA), you must also pay the PCORI fee.
What
PCORI fees and filings are due to the IRS by July 31, 2022, for plans that ended on or after October 1, 2021, and before October 1, 2022. The PCORI rate per covered member (not employee) is $2.79. The prior year’s fee was $2.66.
Where
IRS Form 720 must be submitted via the Electronic Federal Tax Payment System (EFTPS). Headcounts to complete the form are often provided by your administrator. Contact your ARC client relations advisor if you have questions about the form or need assistance obtaining headcount reports.
Why
The Patient-Centered Outcomes Research Institute (PCORI) fee is a government funded entity that studies approaches to health care models with the goal of assisting policy-makers in making informed decisions that improve care and care costs for patients in a variety of settings. This program was implemented as part of the Affordable Care Act in 2008. The fee was set to expire in 2019 but was continued through 2029.
Below is a grid showing whether you need to take further action:
No Action Needed |
Employer completes IRS Form 720 and files* |
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*Most administrators will provide the member headcount data needed to prepare the filing.
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If you need assistance or have questions, please feel free to contact your ARC client relations advisor. Tune in to next month’s Compliance Corner for a return to our regular programming and a riveting report on Annual Notices that employers are required to provide employees on their health benefit plans.