2021 Patient-Centered Outcomes Research Institute (PCORI) Fee - Bim Group

2021 Patient-Centered Outcomes Research Institute (PCORI) Fee

1 MINUTE READ

The Patient-Centered Outcomes Research Institute (PCORI) fee deadline is around the corner. In
Notice 2020-84, the IRS adjusted the applicable dollar amount to be multiplied by the average number of covered lives for purposes of calculating the fee for policy years and plan years that end on or after October 1, 2020, and before October 1, 2021. The fee for the forgoing period is $2.66. Although the PCORI fee is based on the plan year, the reporting and fee due date is always July 31. However, for 2021 the deadline will be August 2, instead of the usual July 31 deadline because the 31st falls on a Saturday. The Affordable Care Act (ACA) requires health insurers and sponsors of self-funded group health plans to pay the fee using IRS form 720.

The PCORI fee is based on covered lives. Accordingly, both employees and retirees and their covered spouses and children generally must be counted. The PCORI fee is based on a plan year, with the count determined based on the entire plan year.

The PCORI fee is small and was initially in effect from 2012 through 2019. However, in December 2019, the Further Consolidated Appropriations Act, 2020 extended the fee to plan/policy years ending before October 1, 2029. It was $1 the first year, $2 the second year, $2.08 the third year, $2.17 the fourth year, $2.26 the fifth year, $2.39 the sixth year, $2.45 the seventh year, $2.54 the eighth year, and $2.66 the ninth year. It is designed to fund research into the most effective ways of treating various diseases. The IRS has not announced the fee for subsequent plan years.

 

 

Recent Insights

June 23, 2021
Webinar

Webinar: Legal Considerations in Safely Returning to Work

Tuesday, July 13, 2021 2:00 p.m. ET / 11:00 a.m. PT Register Now The COVID-19 pandemic has resulted in workplace closures for over a year. Due to the increase in vaccinations and declining infection rates, many states are lifting stay-at-home and business closure mandates so that the country can return to business as usual. To […]
Read more
June 16, 2021
Compliance Alert, IRS

IRS Tool for Advance Child Tax Credit

2-MINUTE READ TIME On June 14, 2021, the IRS issued a news release which unveiled an online Non-filer Sign-up tool designed to help eligible families who don’t normally file tax returns register for the monthly Advance Child Tax Credit payments, scheduled to begin July 15. The tool is also designed to help eligible individuals who don’t normally […]
Read more
June 15, 2021
Compliance Alert

May Compliance Recap

10-MINUTE READ May 2021 was a somewhat busy month in the benefits industry. The absence of a significant of amount of agency guidance during the summer months is to be expected. However, the IRS finally issued guidance on the temporary 100% COBRA subsidy mandated by the American Plan Rescue Act of 2021 (the ARP), following […]
Read more
June 9, 2021
News

BCBSA Antitrust Settlement Classes Eligible for Proceeds

2 MINUTE READ November 5, 2021 is the deadline for filing a claim in connection with the Blue Cross Blue Shield Association (BCBSA) $2.67 billion settlement reached in October 2020. The class action lawsuit was filed more than eight years ago by subscribers seeking injunctive and compensatory relief arising out of BCBSA’s alleged violation of […]
Read more