Sponsors of self-funded health benefit plans, including Individual Health Reimbursement Arrangements (ICHRAs), please be aware that the annual PCORI filing and fee payment are due August 1, 2022 for plans that ended in 2021. Normally, the fee is due on July 31 of the following year, however, this year the due date has been extended to August 1 because July 31 falls on a Sunday.
PCORI Basics
The Affordable Care Act imposes a fee on plan sponsors (usually the employer) of applicable self-insured health plans to help fund the Patient-Centered Outcomes Research Institute (PCORI). All HRAs are considered self-insured plans, including Individual Coverage HRAs (ICHRAs). The fee, required to be reported only once a year on the second quarter Form 720, Quarterly Federal Excise Tax Return and paid by its due date, July 31 (in normal years), is based on the average number of lives covered under the policy or plan.
The fee applies to policy or plan years ending on or after October 1, 2012, and before October 1, 2029. The PCORI fee is filed using Form 720. Although Form 720 is a quarterly return, for PCORI, it is filed annually only, by July 31 (note that for plans that ended in 2021 the deadline is extended to August 1).
Additional Information
For additional information about the PCORI fee filing, see the following links:
- General Information: https://www.irs.gov/newsroom/patient-centered-outcomes-research-institute-fee
- PCORI Questions & Answers: https://www.irs.gov/affordable-care-act/patient-centered-outcomes-research-trust-fund-fee-questions-and-answers
- About Form 720: https://www.irs.gov/forms-pubs/about-form-720
- Form 720 (pdf version): https://www.irs.gov/pub/irs-pdf/f720.pdf
- Form 720 – Instructions Page: https://www.irs.gov/instructions/i720#en_US_202106_publink1000305843
If you need additional assistance, contact your broker or call us at 855-4-NEXBEN or email at info@nexben.com.