1 minute read
The IRS issued Notice 2022-59, which increases the fee for plan years ending on or after October 1, 2022, and before October 1, 2023, to $3.00 multiplied by the average number of lives on the plan.
PCORI Fee Applicability
The Affordable Care Act imposes a fee on health insurance issuers and self-insured plan sponsors to fund comparative effectiveness research. These fees are called PCORI fees. They were scheduled to expire in 2019, but they were extended for another 10 years.
Payment Deadline
PCORI fees must be paid annually using IRS Form 720 by July 31 of each year. For plans ending in 2022, the next payment is due July 31, 2023. Employers with self-insured health plans should have reported and paid PCORI fees for 2021 by August 1, 2022 (since July 31, 2022, was a Sunday).
Calculate PCORI
PCORI fees are calculated based on the average number of covered lives under the plan or policy. Final rules outline a number of alternatives for issuers and plan sponsors to determine the average number of covered lives. Download the bulletin for more details.
National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.
