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IMPORTANT: IRS Releases Revised Form 720 for Payment of PCORI Fee

IRS Form 720 is to be used to pay the PCORI (Patient Centered Outcomes Research Institute) fee. The fee was mandated by the Affordable Care Act. It applies to specified health insurance policies and to plan sponsors of applicable self-insured health plans for each plan year ending after October 1, 2012 and before October 1, 2019. The fees are based on the average number of lives covered under the policy or plan. While insurance companies pay the fee on behalf of insured plans, self-funded plan sponsors must take action to pay the fee by July 31 of the year following the last day of the policy or plan year to which the fee relates. For most calendar-year plans, the first payment date is July 31, 2013.

 

A copy of Form 720 can be accessed here.

Instructions for completing the form can be accessed here.

 

There are nuances to the PCORI fee calculation that may be useful for reducing the fee for a particular year. Please call your BSG Account Manager with any questions.

 

The preceding is not intended to be and is not offered as legal advice. We are prohibited from the practice of law. Compliance is the responsibility of the employer or Plan sponsor and affected employees who should seek their own legal counsel regarding questions about information presented in this news alert. Copyright© 2013
The Benefit Services Group, Inc.
BSG® is  a registered trademark of The Benefit Services Group, Inc.

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