Employers who sponsor self-insured health plans must file IRS Form 720 and pay the Patient-Centered Outcomes Research Institute (PCORI) fee by July 31, 2020 for plan years ending in 2019. As you may recall, the PCORI fee was on track to sunset in 2019 with last payment due in 2020, until it was granted a 10-year extension per the Further Consolidated Appropriations Act of 2020. The extension applies through policy / plan years ending on or before September 30, 2029 with last payment due in 2030.
The IRS issued Notice 2020-44 with the fees for the upcoming submission. However, the updated Form 720 for second quarter, which must be used to pay the fee, has not been released. The adjusted fee amount is based on your plan year:
- $2.45 for plan years ending on or after Oct. 1, 2018, and before Oct. 1, 2019
- $2.54 for plan years ending on or after Oct. 1, 2019, and before Oct. 1, 2020
The fee amount is multiplied by the average number of covered lives during the plan year to determine the total amount due.
Our bulletin below contains additional information about the PCORI Fee extension. Also available on the IRS website are questions and answers relating to the payment of the PCORI fees.
If you have questions or need help, please contact one of our benefits consultants.