The ACA imposes an annual fee on insurers and plan sponsors of self-insured coverage to help fund the Patient-Centered Outcomes Research Institute (PCORI). The PCORI fee applies to policy or plan years ending on or after Oct. 1, 2012, and before Oct. 1, 2019.
Employers who sponsor self-insured coverage—including HRAs and certain FSAs—are responsible for filing and paying the fee by July 31st of the calendar year following the end of the applicable plan year. The fee is paid as an excise tax, submitted to the IRS once per year on the second quarter Form 720.
The fee amount is based on the average number of covered individuals for the applicable plan year. The per-participant fee is adjusted each year for inflation.
PCORI Fee Amounts for 2017:
|Plan Year Ending In 2016||Fee per Covered Life
for July 31, 2017 Payment
|Jan. 1, 2016 - Sept. 30, 2016||$2.17|
|Oct. 1, 2016 - Dec. 31, 2016||$2.26|
Please note: Marshall & Sterling will provide participant counts and detailed instructions for making payment to our affected clients to assist with this filing. You will be contacted with this information shortly if applicable.