Preparing for the Upcoming PCORI Fee
The Patient-Centered Outcomes Research Institute (PCORI) fee filing deadline is fast approaching!
Here’s what you need to know:
Key Details
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- Due Date: The PCORI fee is due by July 31st.
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- Updated Fee: The fee for policy and plan years ending on or after October 1, 2023, and before October 1, 2024, is $3.22 per covered life.
Steps to Prepare
1. Coordinate with Your Accounting Department
Your first step should be to collaborate with the accounting department. Determine if they file Form 720, which is required for the PCORI fee. Here’s how to plan:
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- If the Accounting Department Files Form 720:
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- Confirm when they will need the count of covered lives to file the form on time.
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- If the Accounting Department Does Not File Form 720:
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- Coordinate to obtain electronic filing credentials and payment information
2. Counting Methods for Sponsors of Self-Insured Plans
Accurate counting is crucial for determining the PCORI fee. Here are the methods you can use:
- Form 5500 Method:
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- Determine the average number of lives covered under the plan for the plan year based on a formula that includes the number of participants actually reported on the Form 5500 for the plan year This method may only be used if Form 5500 is filed no later than the due date for the fee imposed for that plan year.
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- Actual Count Method:
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- Count the covered lives on each day of the plan year and average the result.
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- Snapshot Count Method:
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- Add the totals of lives covered on a date during the first, second, or third month in each quarter, or an equal number of dates for each quarter, and dividing the total by the number of dates on which a count was made.
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Conclusion
Preparation is key to ensuring the PCORI fee is filed correctly and on time. Coordinate with your accounting department and choose the appropriate counting method for your organization.