Self-funded plan sponsors and health insurance issuers have until July 31, 2019, to remit PCORI fees for the plan year that ended in 2018.
The Patient-Centered Outcomes Research Institute (PCORI) fee is reported and paid annually on IRS Form 720. These fees are due July 31 of each year for the plan year that ended in the prior calendar year. Therefore, the deadline for filing Form 720 is July 31, 2019, for plan years that ended in 2018.
The fee is based on the average number of covered lives multiplied by the applicable fee:
- For plan years that ended up to, and including, 9/30/18, the fee is $2.39 multiplied by the average number of covered lives.
- For plan years that ended between 10/1/18 and 12/31/18, the fee is $2.45 multiplied by the average number of covered lives.
The Affordable Care Act (ACA) created the PCORI fees, and they are applicable for plan years ending on or after October 1, 2012, but do not apply for plan years ending on or after October 1, 2019. Therefore, this will generally be the final PCORI remittance for calendar year plans. However, the final remittance for plans that end between 1/1/19 and 10/1/19 will be July 31, 2020.
If you have questions about how to calculate the average number of lives, which plans need to be reported, or any other questions regarding PCORI fees, please contact your Hylant representative.