As a reminder, Patient Centered Outcomes Research Institute (“PCORI”) fees are due for most group health plans by July 31, 2015. Under Health Care Reform, most group health plans will be required to annually pay PCORI fees through 2019.
The fee due depends on the date your most recent plan year ended. Sponsors of self-insured group health plans and insurers must pay the following PCORI fees this year:
The insurance carrier is responsible for paying the PCORI fee on behalf of a fully insured plan.
Employers that sponsor self-insured group health plans (including Health Reimbursement Arrangements or “HRAs” that are integrated with a fully-insured plan) should report and pay PCORI fees using IRS Form 720, Quarterly Federal Excise Tax Return. PCORI fees are not a “permissible plan expense” under ERISA, and therefore may not be paid from plan assets. However, PCORI fees are a tax deductible expense for plan sponsors of self-funded plans and health insurers.
For more information about which plans are responsible for paying PCORI fees and how to calculate the fee, please see our earlier publication here.
If you need help amending your plan, calculating the number of covered lives or addressing any other issues pertaining to PCORI fees or Health Care Reform, please contact Norbert Kugele (616.752.2186 or email@example.com) or any other member of the Warner Employee Benefits Group.