This compliance requirement primarily impacts two groups of employers:
- Employers that sponsor a self-insured health plan
- Employers that have a fully-insured health plan with a Health Reimbursement Arrangement (HRA)
If your company is responsible for paying this fee, the CBG Benefits team is here to help. Please contact our team at 781-759-1222 and let us know if you need assistance.
PCORI Fee Overview
Under the Affordable Care Act, certain employers have an annual obligation to pay the PCORI fee. PCORI fees are reported and paid annually using IRS Form 720 (Quarterly Federal Excise Tax Return). The IRS instructions for filing form 720 include information on reporting and paying the PCORI fees.
Using Part II, Number 133 of Form 720, issuers and plan sponsors will be required to report the average number of lives covered under the plan separately for specified health insurance policies and applicable self-insured health plans. That number is then multiplied by the applicable rate for that tax year, as follows:
- $2.26 for plan years ending on or after Oct. 1, 2016, and before Oct. 1, 2017
- $2.39 for plan years ending on or after Oct. 1, 2017, and before Oct. 1, 2018
Support for Clients of CBG Benefits
If you are a client of CBG Benefits, please be sure to reach out to our team if you need any support understanding and meeting this compliance requirement. We also encourage you to visit the CBGconnect portal and download the “Health Care Reform: Reporting and Paying the PCORI Fees” bulletin.
If you have any questions, please contact our team at 781-759-1222.