The ACA Times


  Show menu
  • Home
  • Articles
  • Get to Know the ACA
  • ACA – Frequently Asked Questions
  • Resources
  • Meet the Editors
  • Trusaic
  • Contact Us
  • Terms of Service
  • Privacy Notice
  
  • Home
  • Affordable Care Act
  • IRS Releases New ACA PCORI Fees

Articles

IRS Releases New ACA PCORI Fees

November 19, 2018 Joanna Kim-Brunetti Affordable Care Act, Health Care Coverage
IRS Releases New ACA PCORI Fees

2 minute read:

The IRS has released new PCORI rate for health insurance plans that end on or after October 1, 2018 and before October 1, 2019.

PCORI fees are imposed on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans to fund the Patient-Centered Outcomes Research Institute (PCORI), which was established under the Affordable Care Act (ACA). The institute assists, through research, patients, clinicians, purchasers and policy-makers, in making informed health decisions by advancing the quality and relevance of evidence-based medicine. The institute compiles and distributes comparative clinical effectiveness research findings.

IRS Notice 2018-85 states that the PCORI rate per covered individual is $2.45 for organizations with policy and plan years that end on or after October 1, 2018 and before October 1, 2019.

For organizations that have plans and policies that end on or after October 1, 2017 and before October 1, 2018 the applicable PCORI rate per covered individual is $2.39.

The complete IRS Notice 2018-85 can be viewed here.

The PCORI fee on an insurer is calculated off the average number of lives covered under the policy. The fee imposed on sponsors of a self-insured health plan is based on the average number of lives covered under the plan. That means that insurers or plan sponsors must account for all parties enrolled in their respective policy of plan, such as dependents, spouses, retirees, and COBRA beneficiaries. Depending on when the plan starts and ends also can determine the fee per form.

On an annual basis, organizations must pay PCORI fees by July 31 and do so by using Form 720. The IRS states that the fee should be paid using the Electronic Federal Tax Payment Systems (EFTPS).

If your organization is subject to the PCORI fees, make sure you get your information in before July 31st as failure to pay the fee could result in IRS penalties. Since the PCORI fee is considered an excise tax, it is calculated under IRC 6651. Some third-party organizations may include PCORI coordination as a part of their ACA compliance service at no extra charge.

For more information from the IRS on the PCORI fee click here.

We’re committed to helping companies reduce risk, avoid penalties, and achieve 100% ACA compliance. For questions about the ACA contact us here.

Summary
IRS Releases New ACA PCORI Fees
Article Name
IRS Releases New ACA PCORI Fees
Description
The IRS has released Notice 2018-85 announcing the PCORI rate for health insurance plans that end on or after October 1, 2018 and before October 1, 2019.
Author
JOANNA KIM-BRUNETTI
Publisher Name
The ACA Times
Publisher Logo
The ACA Times
Short URL of this page: https://acatimes.com/lfa
Joanna Kim-Brunetti

Joanna Kim-Brunetti

Joanna Kim-Brunetti, Esq., is Chief Legal Officer for Trusaic.

View more by Joanna Kim-Brunetti

Related tags to article

Affordable Care Act (ACA)COBRAElectronic Federal Tax Payment Systems (EFTPS)Form 720Health Care CoverageIRC 6651IRSIRS Notice 2018-85Patient-Centered Outcomes Research Institute (PCORI)PCORI FeesPenalties
Related Articles New York Pay Transparency Law Delayed to November New York Pay Transparency Law Delayed to November
Related Articles Takeaways From the 2021 UK Gender Pay Gap Reporting Results Takeaways From the 2021 UK Gender Pay Gap Reporting Results
Related Articles LinkedIn Settlement Demonstrates Need For Accurate Pay Equity Audits LinkedIn Settlement Demonstrates Need For Accurate Pay Equity Audits
Related Articles IRS Eases Rules on Hardship Exemptions by Robert Sheen  •  
Related Articles IRS Offers Transition Relief for ACA Tax Penalties by Robert Sheen  •  
Related Articles “Doc Fix” Made Permanent “Doc Fix” Made Permanent by Robert Sheen  •  
ACA Essential Guide for Employers 2021
Subscribe

Popular Posts

  • IRS Proposed Ruling Could Change ACA Affordability
  • ACA Penalty Letter 226J on The Rise
  • Submit ACA Corrections Now to Avoid IRS Penalties
  • New PTC Data is Cause For Concern For Employers
  • ACA Enrollment Reaches 35 Million Signups

Trending Topics

  • Regulations
    (91)
  • Legislation
    (47)
  • Editorials
    (19)
  • ACA Compliance
    (167)
  • Tax Filings
    (19)
  • Applicable Large Employer (ALE)
    (13)
  • Penalties
    (18)
  • IRS
    (87)
  • Health Insurance Marketplace
    (28)
  • Polls/Surveys
    (18)
  • Health Care Reform
    (22)
  • Reporting
    (22)
  • IRS 226J/226-J
    (28)

Categories


Brought to you by Trusaic

 

Twitter Facebook

Downloads

The ACA 101 Toolkit

The Essential Guide to the ACA

Letter 226J Infographic

5 Common ACA Compliance Mistakes

Triangle of Trust

Articles

IRS Affordability Safe Harbors Help Avoid ACA Penalties

Calculating FT and FTE Employees

The ACA Monthly Measurement Method: A Few Examples

The IRS’s 1095 Forms for ACA Explained

Incorrect ITINs Will Cause Havoc With ACA Compliance

Knowledge Center

Get to know the ACA

Get to know Letter 226J

Webinar: What triggers an ACA penalty

Trusaic News

Our Story


FEATURED IN

Human Resources Today
Connected Health Pulse

© 2021 Copyright Trusaic - All Rights reserved.

Close Window

Loading, Please Wait!

This may take a second or two. Loading, Please Wait!