PCORI Fee Adjusted for Current Plan Year

By Dave Tighe

October 11, 2017

As part of the Affordable Care Act, the fee to fund the Patient-Centered Outcomes Research Institute (PCORI) has been in effect since 2012, and by now plan sponsors and insurers are very familiar with it. The fee itself was imposed as part of Sections 4375 and 4376 of the Internal Revenue Code, and is scheduled to be in effect for plan years ending after September 30, 2012 and before October 1, 2019. The amount of the PCORI fee is equal to the average number of lives covered during the plan year multiplied by the applicable dollar amount for the year. Of note, the applicable dollar amount is indexed each year. The IRS has recently released Notice 2017-61, stating that for plan years ending on or after October 1, 2017 and before October 1, 2018, the fee applicable dollar amount will be increased from $2.26 to $2.39 per covered member. This dollar amount will be used to calculate the PCORI fee amount payable in July 2018 using the IRS Form 720.

For more information, please feel free to contact a Findley Davies | BPS&M consultant, or view the IRS notice directly.

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