If your organization sponsors a self-insured plan, you may be on the hook to contribute to the Patient-Centered Outcomes Research Institute (PCORI) Research Trust Fund by July 31, 2015. This fee applies to applicable self-insured plans, including health reimbursement arrangements (HRAs) and flexible spending arrangements (FSAs) that don’t qualify as excepted benefits. In addition, employers who provide COBRA coverage and major medical coverage that falls under multiple policies or plans may also be obligated to contribute to PCORI.
PCORI came about through the Patient Protection and Affordable Care Act (PPACA) in 2010. Its role is to “improve the quality and relevance of evidence available to help patients, caregivers, clinicians, employers, insurers, and policy makers make informed health decisions.” This is done through comparative clinical effectiveness research (CER), specifically focused on Patient-Centered Outcomes Research (PCOR).
Applicable plans must pay fees by July 31, 2015 using IRS form 720 (Quarterly Federal Excise Tax Return), which can be submitted through the Electronic Federal Tax Payment System (EFTPS). This only applies to the second quarter of the year. For 2015, fees are $2.08 per the average number of lives covered during the policy or plan year. The average number of lives covered can be determined through one of three methods: actual count, snapshot, or Form 550. Third party administrators are not permitted to remit these fees for plan sponsors.
For more information on PCORI and to determine if your self-insured plan qualifies, please contact us.
The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources believed to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose