The IRS just announced (Notice 2017-61) the new PCORI fee is $2.39 (per covered life) for plans ending on or after October 1, 2017. The next PCORI fee is not due until July 31, 2018.
Employers who sponsor insured health plans are not required to take any action to pay the PCORI fees; instead, health insurers/carriers will pay the fee and will no doubt factor it in when setting premiums.
Employers who sponsor self-insured health plans are responsible to pay the fee. Note that level-funded plans are self-funded, as are most if not all “minimum essential coverage” plans (MECs).
- The next PCORI fee is due by July 31, 2018.
- The PCORI fee is paid using IRS Form 720.
- The PCORI fee amount varies depending on when the plan year ends, for example:
- $2.39 per “covered life” for plan years ending on or after October 1, 2017 and before October 31, 2018. (e.g., plan year end December 31, 2017)
- $2.26 per “covered life” for plan years ending on or after October 1, 2016 and before October 31, 2017.
- $2.17 per “covered life” for plan years ending on or after October 1, 2015 and before October 1, 2016.
- To calculate the number of covered lives, a plan must use one of the three following counting methods : Actual Count method, Snapshot method(s), or the Form 5500 method