As discussed in prior blog posts, the PCORI Fee was resurrected by the IRS in 2019. This past week, the IRS updated the amount of the PCORI Fee for policy years and plan years that end on or after October 1, 2022, and before October 1, 2023. The new amount of the PCORI Fee is $3.00 per covered life. That is a $.21 increase from the prior year.
As a reminder, the PCORI Fee must be paid by all self-insured health plans for each covered life. Covered lives include all spouses, dependents, retirees, and COBRA beneficiaries covered by the plan. The PCORI Fee also applies to HRAs. Even if your health plan is fully-insured, you must still pay the PCORI for your self-insured HRA.
As in the past, the PCORI Fee is paid in the second quarter of the year but no later than July 31, and is reported on IRS Form 720. The form may be found on the IRS website at: https://www.irs.gov/pub/irs-pdf/f720.pdf. The PCORI fee reporting is found in Part II, Line 133.
Self-insured plan sponsors may use one of several specified methods to calculate the fee. Those methods are: the actual count method, the snapshot method, and the Form 5500 method. See the IRS website for more details on each of the permitted methods.