IRS Updates PCORI Fee

In Notice 2018-85, the IRS that the adjusted applicable amount for the Patient-Centered Outcomes Research Institute (PCORI) Fee. Plans ending on or after October 1, 2018 has been raised to $2.45 from $2.39.

The fee is adjusted each year for inflation. However, the program ends in 2019 and PCORI fees will not apply for plan years ending after September 30, 2019.

For a copy of the Notice 2018-85, please click on the link below:
https://www.irs.gov/pub/irs-drop/n-18-85.pdf

About the PCORI fee
The patient-centered outcomes research (PCORI) fee is imposed on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans for policy and plan years ending on or after October 1, 2012. This generally applies to employers who are self-insured. Employers who purchase insurance through a third party carrier are generally not responsible for the PCORI form.

The fee is also owed if employers contributed to employees’ health reimbursement arrangements (HRAs) last year or to health flexible spending accounts (FSAs) unless certain exceptions were met. The fee does not apply to health savings accounts.

This form and the fee are due each year by July 31.