The Affordable Care Act (ACA) created the Patient-Centered Outcomes Research (PCOR) fee, which must be paid by group health plans.
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. The fee is due on a “plan year-end” basis. For the 2019 calendar year plans, the fee is $2.54 and must be paid by July 31, 2020. For all other plan years, please click here. Payment is completed through the filing of IRS Form 720 , which was updated April 2020.
As a reminder this fee was set to expire for plan years ending after October 1, 2019, however the fee was extended through 2030. All self-funded plans must continue to file and fully insured plans will continue to pay the fee via insured premiums.
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.
If you are interested or need more information about Form 720 preparation assistance, please contact your FirstPerson Account Executive.