PCORI Fees Due July 31
The Affordable Care Act (ACA) requires health insurance issuers and sponsors of self-insured health plans to pay Patient-Centered Outcomes Research Institute (PCORI) fees by July 31, 2014. The fees are reported and paid annually using IRS Form 720 (Quarterly Federal Excise Tax Return). Employers with only fully-insured plans do not need to file Form 720 and pay the PCORI fee, since it is solely the obligation of the insurance company to do so. However, the fee is often passed to the employer from the insurance company, so understanding how to calculate the average number of lives, not just employees, on the plan is critical. Employers who maintain one or more self-insured plans must file Form 720 and pay the PCORI fee.
The fees due in 2014 are based upon plan years as follows:
- January 1, 2013 – September 30, 2013 $1 fee per average covered life is due by July 31, 2014.
- October 1, 2013 – September 30, 2014 $2 fee per average covered life is due by July 31, 2014.