Employers who sponsor self-insured health plans with plan years ending in 2020 must file IRS Form 720 and pay the Patient-Centered Outcomes Research Institute (PCORI) fee by July 31, 2021. The IRS issued the latest adjusted fee amount of $2.66 in Notice 2020-84.
The applicable fee amount is based on plan year dates. See fees below for payments due in 2021:
- $2.66 for plan years ending on/after Oct. 1, 2020, and before Oct. 1, 2021
Example: plan years beginning on Nov. 1 and Dec. 1 of 2019 and Jan. 1, 2020
- $2.54 for plan years ending on/after Oct. 1, 2019, and before Oct. 1, 2020
Example: plan years beginning on Feb. 1, Mar. 1, Apr. 1, May 1, June 1, July 1, Aug. 1, Sept. 1 and Oct. 1 of 2019
The fee amount is multiplied by the average number of covered lives during the plan year to determine the total amount due.
Our bulletins below address the updated fee amount and contain additional information including who must pay the fee and how the fee is reported on IRS Form 720 for the second quarter. Another helpful resource is the IRS website which contains questions and answers relating to the payment of the PCORI fee
If you have questions or need help, please contact one of our benefit consultants.