Compliance Alerts

PCORI fee (for non-calendar year plans ending between Jan. 1, 2019 and Sept. 30, 2019)

Deadline:

July 31, 2020

Applicability:

Employers with self-insured health plans

Description

Employers with self-insured health plans must pay an annual fee to fund the Patient Centered Outcomes Research Institute (PCORI). Self-insured health plans that are subject to PCORI fees include self-funded medical plans, as well as HRAs offered in conjunction with fully insured group medical plans. HRAs offered with self-insured group medical plans are not subject to separate PCORI fees if the HRA and the medical plan have the same plan sponsor and plan year.

Employers use IRS Form 720 to report and pay PCORI fees, which are due by the July 31 of the year that follows the last day of the plan year. The PCORI fees are temporary—the fees do not apply to plan years ending on or after Oct. 1, 2019.

Because the PCORI fees do not apply for plan years ending on or after Oct. 1, 2019, calendar year plans do not pay PCORI fees for the 2019 plan year. Also, non-calendar year plans ending on or after Oct. 1, 2019, do not pay PCORI fees in 2020. However, a final PCORI fee payment will be due July 31, 2020, for non-calendar year plans ending between Jan. 1, 2019, and Sept. 30, 2019.