It is that time of year again when employers of self-funded| level-funded group health plans or Health Reimbursement Accounts (HRA’s) must report and pay their PCORI fees to the IRS.

The IRS announced the amount used to calculate the PCORI fee payable for plan years ending on or after October 1, 2020, but before October 1, 2021, has been increased to $2.66 per covered life. While all plan sponsors of self-insured | level-funded group health plans and HRA’s will pay the PCORI fee in 2021, the amount upon which the fee is based depends on when the plan year ends as described in the following table.

Plan year ending in 2020Fee per covered life for July 31, 2021 payment
Plan years ending on or after October 1, 2020, through December 31, 2020, including calendar year plans$2.66
Plan years ending on or after January 1, 2020, through September 30, 2020$2.54

The fee for plan years ending in 2020 is due by July 31, 2021.

EBI will be working closely with your carriers in the coming weeks to obtain the necessary data for calculating the fees and touch base with you on an individual basis as guidance is made available.

For those clients that are fully insured your carriers will be filing the fees on your behalf and no action will be required.

Disclaimer: EBI and any of its employees do not provide legal or tax advice. Compliance, regulatory and related content is for general information purposes and is not guaranteed to be accurate or complete. We recommend you should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.