IRS offers updated guidance on PCORI fee

The Internal Revenue Service issued 11 questions and answers July 19 to provide guidance related to the reporting and payment of the Patient-Centered Outcomes Research Institute Trust Fund fee (PCORI fee).

In an earlier article, we provided information about the PCORI fee, which, according to the new IRS Q&As, will allow PCORI the ability to assist, through research, patients, clinicians, purchasers and policy-makers, in making informed decisions by advancing the quality and relevance of evidence based medicine.

First due date approaching

The first reporting and payment of the PCORI fee is due by July 31, 2013, but only issuers of health insurance policies and self-insured health plan sponsors with policy or plan years ended in October, November or December of 2012 are required to file by that date.

Exemptions to PCORI fee

There are exemptions from filing and paying the PCORI fee (see Q.9 of the Q&As), which are primarily government-sponsored programs including Medicare, Medicaid, the Children's Health Insurance Program, programs designed for members of the military and veterans, members of Native American tribes under the Indian Health Care Improvement Act, and other similar programs.

Also, limited benefit plans such as vision, dental and most flexible spending arrangements are not subject to the PCORI fee. However, the more general coverage self-insured health plans, such as medical reimbursement plans and health reimbursement plans are required to pay the PCORI fee.

If you have a question about the PCORI fee, contact your Eide Bailly service provider.