Volume 40 | Issue 74
Download this FYI as a printable PDF
The deadline for paying ACA’s PCORI fee is drawing near. Sponsors of self-insured health plans should prepare to report and pay the fee by July 31, 2017.
Background
The ACA requires sponsors of self-insured health plans and health insurers to pay a fee to help fund the Patient Outcomes Research Institute (PCORI). PCORI conducts research to evaluate and compare the health outcomes and clinical effectiveness, risks and benefits of medical treatments, services, procedures and drugs.
The fee, paid to the IRS, applies to plan years (and policy years) ending after September 30, 2013 and before October 1, 2019. The amount of the fee is based on the average number of lives covered under the plan. (See our January 23, 2013 For Your Information.)
Applicable PCORI Fee Amounts
For plan years ending in 2016, the fee is due by July 31, 2017. The amount of the fee per covered life depends on when the plan year ends.
| Plan Year | Fee Per Covered Life |
| Plan years ending on or after October 1, 2016 through December 31, 2016 (including calendar year plans) | $2.26 |
| Plan years ending on or after January 1, 2016, through September. 30, 2016 | $2.17 |
In Closing
Plan sponsors should use Form 720 and follow the related instructions to report and pay the PCORI fee.