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Monday, 18 June 2018 15:52

Compliance Deadline: PCORI fees due July 31, 2018

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The Patient Centered Outcomes Research Institute (PCORI) fee is due July 31, 2018 for employers with any type of self-funded plan and/or a Health Reimbursement Arrangement. The fee helps fund unbiased research that evaluates the clinical effectiveness of medical treatments regardless of the profit potential. This fee is also known as the Comparative Effectiveness Research Fee, or CERF.

The fee for plan years ending between January and September of 2017 is $2.26 per participant. The fee for plan years ending in October, November, or December is $2.39 per participant.

Employers should calculate the average number of lives (employees and all dependents) over the plan year that ended in 2017. There are several allowable estimation methods for arriving at this average:

  • Actual count method – The total number of lives covered (employees and their covered family members or only employees if HRA or FSA) on each day of the plan year, divided by the total number of days in the plan year.
  • Snapshot method – At least one date during each month of each quarter. Dates in each quarter must be within 3 days of the dates for corresponding quarters.
    • Snapshot actual method – Total number of lives covered (employees and their covered family members or only employees if HRA or FSA) on each selected date, divided by the number of dates used.
    • Snapshot factor method – Number of participants with self-only coverage plus 2.35 times the number of participants with other than self-only coverage. (Do not use this method for HRA or FSA plans.)
  • Form 5500 method – Use participant counts from the 5500 for that plan for that year.
    • Plan with only self-only coverage – Add the total number of participants at the beginning and end of the plan year and divide by 2 to get the average for the year.
    • Plan with self-only and dependent coverage – Add the total number of participants at the beginning and end of the plan year. (Do not use this method for HRA or FSA plans.)

Employers must submit payment for the PCORI fee along with the IRS Form 720. All Fall River clients who needed to remit the PCORI fee were previously emailed detailed instructions and assistance.  For more information, please see the instructions for filing link.

Let us know if you need help complying with this requirement, as the deadline is right around the corner!

Read 307 times Last modified on Wednesday, 27 June 2018 16:10

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