Home Affordable Care Act The ACA PCORI Fee Deadline is Fast Approaching

The ACA PCORI Fee Deadline is Fast Approaching

2 minute read
by Robert Sheen

2 minute read:

This time last year was presumed to be the last time health insurers and employers offering self-funded health insurance plans would have to pay PCORI fees, but things change.

The PCORI fees were set to expire for plans ending before October 1, 2019 but when the Trump administration signed the Further Consolidated Appropriations Act of 2020 into law, PCORI and the associated fees were extended through September 30, 2029.

As a result, health insurers and plan sponsors offering self-funded health insurance plans will need to continue to pay the Patient-Centered Outcomes Research Trust Fund Fee via Form 720 by July 31 annually. The fee will need to be paid using the Electronic Federal Tax Systems (EFTPS).

For policy and plan years that end on or after October 1, 2019 and before October 1, 2020, the applicable dollar amount per covered individual is $2.54.

The PCORI fee is calculated off the average number of lives covered during the policy year. That means that all parties enrolled will have to be accounted for such as dependents, spouses, retirees, and COBRA beneficiaries.

The final regulations specify that the PCORI fees also apply to short-term plans of applicable self-insured health plans; that is, plans that run shorter than 12 months in duration. The only exceptions for paying PCORI fees apply to governmental programs and programs established by federal law for providing medical care.

The Patient-Centered Outcomes Research Trust Fund fee is a fee on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans that helps to fund the Patient-Centered Outcomes Research Institute (PCORI), which was established by 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.

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

If your organization is subject to the PCORI fees, make sure you get your information in before July 31 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.

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

Summary
The ACA PCORI Fee Deadline is Fast Approaching
Article Name
The ACA PCORI Fee Deadline is Fast Approaching
Description
Due to the Further Consolidated Appropriations Act of 2020, PCORI fees have been extended through 2029.
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Publisher Name
The ACA Times
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Short URL of this page: https://acatimes.com/zjf
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