PCORI Reporting is for customers of Remodel Health that offer a MEC plan. As a sponsor of a self-funded or partially self-funded plan, you are required to report the average employee count for 2018 on IRS Form 720 by July 31, 2019. Below is more information on PCORI fees and the filing requirement.
What is the PCORI fee?
Health care reform created a nonprofit corporation, the Patient-Centered Outcomes Research Institute, to support clinical effectiveness research. This entity will be funded in part by fees (sometimes referred to as "PCORI fees") paid by certain health insurers and applicable sponsors of self-insured health plans and it will assist patients, clinicians, purchasers, and policymakers in making informed health decisions by advancing the quality and relevance of evidence-based medicine through the synthesis and dissemination of comparative clinical effectiveness research findings.
How much is the PCORI Fee?
The fee is based on the date of the last day of your plan year. Below is the payment schedule to determine the rate for your plan.
|Last Day of Plan Year||Fee per Average Covered Life||Fee Due Date|
|January 31, 2018||$2.39||July 31, 2019|
|February 28, 2018||$2.39||July 31, 2019|
|March 31, 2018||$2.39||July 31, 2019|
|April 30, 2018||$2.39||July 31, 2019|
|May 31, 2018||$2.39||July 31, 2019|
|June 30, 2018||$2.39||July 31, 2019|
|July 31, 2018||$2.39||July 31, 2019|
|August 31, 2018||$2.39||July 31, 2019|
|September 30, 2018||$2.39||July 31, 2019|
|October 31, 2018||$2.45||July 31, 2019|
|November 30, 2018||$2.45||July 31, 2019|
|December 31, 2018||$2.45||July 31, 2019|
How is the fee filed?
Fees are to be reported and paid once a year, even though they are reported on IRS Form 720 (Quarterly Federal Excise Tax Return). Reports and payments are due no later than July 31of the year following the last day of the policy or plan year. For example, a return that reports liability for the fee imposed on a health insurance policy for the year ending on December 31, 2018must file by July 31, 2019. When you fill out the payment voucher please select the 2ndquarter as the tax period.
How to Complete IRS form 720 (Please refer to the below instructions)
Enter your company Information at top of page 1 and enter June 30, 2019as the quarter ending date.
Enter 2018 average employee count on page 2, Part II, line 133c if your plan ended before October 1, 2018 OR line 133d if your plan ended on or after October 1, 2018 and before October 1, 2019. Calculate the fee by multiplying the average number of lives covered by the applicable rate and enter the amount as the tax due.
Enter total tax on page 3, Part III, line 3 and line 10.
Complete the "Sign Here" section at the bottom of page 3 and sign and date.
Complete Form 720-V for tax period 2nd Quarter.
Make check payable to:
United States Treasury
Send payment with Form 720 pages 1, 2 , 3 and payment voucher to:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0009
Payments are due July 31, 2019.
-IRS PCORI Form 720 https://www.irs.gov/pub/irs-pdf/f720.pdf
-IRS PCORI Form 720 Instructions https://www.irs.gov/pub/irs-pdf/i720.pdf
-IRS PCORI Form 720 Information https://www.irs.gov/forms-pubs/form-720-quarterly-federal-excise-tax-return