Each year, Employers must wait for the IRS to update the Form 720 in order to pay their fees with the correct form. The IRS has released a revision to the IRS Form 720 and Form 720 instructions that can be used for the PCOR fees due by July 31, 2017.
As you may recall, the Patient-Centered Outcomes Research (PCOR) fee is to fund research on patient outcomes. Employer sponsored health plan(s) are subject to PCOR fees). An employer that has a HRA that is integrated with a major medical plan will pay a PCOR fee on the HRA and the insurer will pay the PCOR fee on the insured plan. For an employer that has a self-funded health plan integrated with an HRA, the employer will only be required to pay a fee on one plan. Non-excepted Health Care FSA (HCFSA) will also be subject to the fee and the employer will be responsible for the payment.
The fee for plans ending on or after 10/1/15 but before 10/1/16 will be $2.17 per covered life and for plan years ending after 10/1/16 but before 10/1/17, the fee will be $2.26 per covered life, subject to increase in future years. 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.