IRS ANNOUNCES INCREASE IN THE PCORI FEE
The IRS has announced an increase in the PCORI Fee assessed against health insurance companies and the sponsors of self-insured health plans. This assessment funds the he Patient-Centered Outcomes Research Institute which support clinical effectiveness research.
The fee for plan years that end on or after October 1, 2022, and before October 1, 2023, is $3.00 times the average number of covered lives under the plan. This includes former employees and dependents.
Payments are due no later than July 31 of the year following the last day of the policy or plan year.
Payments for self-insured plans are due from the sponsoring employer and cannot be paid from plan assets.
Employers with fully insured plans are not liable for the fee with respect to their insured coverage. Note, however, the some fully insured employers may still owe the fee if they also sponsor a Health FSA or HRA.
See Geek Out! PCORI Fee for more information.
The information and content contained in this blog post are for general informational purposes only, and does not, and is not intended to, constitute legal advice. As always, for specific questions concerning your health and welfare plan, or for help in operating your plan during the current COVID-19 crisis, please consult your own ERISA attorney or professional advisor.
