Revised Form 720 for PCOR Fee Payment

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The IRS has revised Form 720 and the instructions to incorporate the reporting and payment of the Patient Centered Outcomes Research (PCOR) fee by July 31, 2014 for plan years that ended in 2013.


The PCOR fee is payable by insurers of group medical plans and by employers that sponsor self-insured group medical plans, including health reimbursement arrangements (HRAs) or non-excepted health flexible spending arrangements (FSAs).

Employers that owe the PCOR fee will want to pay special attention to page 8 of the instructions that explain the calculation of the PCOR fee and the applicable amount to pay per covered life based on the plan year end date of the HRA or non-excepted health FSA.


As explained in our flyer, the PCOR fee is due for a period of seven plan years. The PCOR fee is payable by July 31 of the calendar year following the end of the applicable plan year. For example, for an HRA plan year that ended December 31, 2013, the PCOR fee is due no later than July 31, 2014. An HRA plan year that ended August 31, 2013 also pays the PCOR fee by July 31, 2014.


Under guidance from the IRS, HRAs and non-excepted health FSAs owe the PCOR fee for each covered employee and need not count spouses, children or other dependents covered by the plan.

Categories: Health Care Reform, Benefits in General, Compliance | Tags: PCOR Fee , TR Fee | Return