The Affordable Care Act (ACA) created the Patient-Centered Outcomes Research (PCOR) fee, which must be paid by both fully insured and self-funded group health plans. The fee is due on a “plan year-end” basis. For the 2016 calendar year plans, the fee is $2.26 and must be paid by July 31, 2017. For all other plan years, please click here. Payment is completed through the filing of IRS Form 720, which was updated April 2017 to include this new obligation.
We have good news for employers with fully insured group health plans: no further action is needed unless you sponsor a Health Reimbursement Arrangement (HRA), which is considered a self-funded group health plan.
Employers sponsoring self-funded group health plan coverage have the obligation to report and pay the PCOR fee. Fortunately, we have the tools to help you meet this obligation. Our Compliance Team has created a step-by-step instruction guide to simplify your calculation of the amount due and walk you through completion of the IRS Form 720 that must be filed with your payment. This guide also includes specific information about the different types of self-funded plan arrangements that are subject to the fee and those that are exempt.
We are available for one-on-one assistance with preparation of the Form 720. If you are interested or need more information about Form 720 preparation assistance, please contact your FirstPerson Account Executive.