In 2013, PPACA created the "Patient-Centered Outcomes Research Institute'' (PCORI), a think tank devoted to evaluating the effectiveness of various medical treatments and procedures. The theory is that the PCORI will discover ways to make health care less expensive. Employers who sponsor a Health Reimbursement Arrangement (HRA) are subject to the Patient Centered Outcomes Research Institute (PCORI) fee. The fee (detailed here) is paid to the federal government to fund the institute.
Since the PCORI fee is considered an excise tax, it is reported and payable using IRS Form 720. The deadline to pay the fee is July 31 following the end of each applicable plan year. For example, for plans that run January 1, 2021 - December 31, 2021, the filing is due on July 31, 2022.
For additional information and help calculating your PCORI fee, check out our PCORI Fee Worksheet.
Have a question about the PCORI fee or other compliance-related topics? Contact your Ameriflex Client Relationship Manager for additional support.