Each year, employers must wait for the IRS to update Form 720 in order to pay their PCOR fees with the correct form. The IRS has released a revision to IRS Form 720 and Form 720 Instructions, which is to be used for the PCOR fees due July 31, 2019.
As you may recall, the Patient-Centered Outcomes Research (PCOR) fee is used to fund research on patient outcomes. As part of the Affordable Care Act (ACA), employer-sponsored health plan(s) are subject to PCOR fees.
- Employers with Health Reimbursement Arrangements (HRAs) that are integrated with major medical plans pay a PCOR fee on the HRA. Insurers pay a PCOR fee on the insured plan.
- Employers with self-funded health plans that are integrated with an HRA are required to pay a fee only on one plan.
- Non-excepted Health Care FSAs (HCFSAs) are also subject to the fee. Employers are responsible for the payment.
The PCOR fees due by July 31, 2019 include plan years ending in 2018. The table below includes the applicable fee amount per covered life based on applicable plan year end date.
PCOR fees are payable on IRS Form 720 in the 2nd quarter of the calendar year following the end of the applicable plan year and are due by July 31st.
For more information please see our PCOR Fee Flyer.
Form 720: https://www.irs.gov/pub/irs-pdf/f720.pdf
Form 720 Instructions: https://www.irs.gov/pub/irs-pdf/i720.pdf