09 Jul PCOR Fees for 2018 Are Due by July 31, 2019
PCOR fees for 2018 are due July 31st. This applies to employers who sponsor self-insured plans or have integrated health reimbursement arrangements (HRAs) with their fully insured plans. These employers should be ready to submit their Patient Centered Outcome Research (PCOR) fee payments, using IRS Form 720 on July 31, 2019, for their plan year ending in 2018.
Calculating PCOR Fees
The applicable PCOR fee dollar amount used to calculate the total PCOR fee owed depends on when the plan year ends. For plan years that end on or after October 1, 2017, and before October 1, 2018, the PCOR fee amount is $2.39. For plan years that end on or after October 1, 2018, and before October 1, 2019, the PCOR fee amount is $2.45. For example, the PCOR fee amount that would apply to a plan year that ended on September 30, 2018, would be $2.39, and the PCOR fee amount that would apply to a plan year that ended on October 31, 2018, would be $2.45.
When determining the total PCOR fee amount due, employers multiply the applicable PCOR fee dollar amount by the average number of lives covered under its plan. Employers determine the average number of covered lives by referencing one of the four approved calculation methods: the actual count method, the snapshot method, the snapshot factor method, or the Form 5500 method.
The PCOR fee will be expiring soon, as it will no longer apply to plan years ending after September 30, 2019. Thus, the last plan year to which the PCOR fee could apply would be October 1, 2019 – September 30, 2019, and PCOR fee amount would be due July 31, 2020.
The IRS also provides helpful information on the PCOR fee, which is available at the following links:
- IRS Information on PCOR Fee: https://www.irs.gov/newsroom/patient-centered-outcomes-research-institute-fee
- IRS Questions & Answers on the PCOR Fee: https://www.irs.gov/affordable-care-act/patient-centered-outcomes-research-trust-fund-fee-questions-and-answers
- IRS Table on the Application of the PCOR fee to Common Types of Health Coverage Arrangements: https://www.irs.gov/newsroom/application-of-the-patient-centered-outcomes-research-trust-fund-fee-to-common-types-of-health-coverage-or-arrangements
- IRS Table on the PCOR Fee Filing Due Dates and Applicable Rates: https://www.irs.gov/affordable-care-act/patient-centered-outreach-research-institute-filing-due-dates-and-applicable-rates
- Instructions for Form 720: https://www.irs.gov/pub/irs-pdf/i720.pdf
Do you have questions about PCOR fees or other related HRA issues? Contact us at ETC and learn the direction to take.