IRS Issues Questions and Answers on PCORI Fees

The Internal Revenue Service (IRS) recently provided additional information on the Patient-Centered Outcomes Research Trust Fund fee (the “PCORI fee”)

The IRS reminds the public that the new research trust fund fees are due July 31 from health insurers and the plan sponsors of self-insured plans. The fee is paid annually using Form 720, Quarterly Federal Excise Tax Return.

The new Q&A answers the following questions (among others).

• How does an issuer of a specified health insurance policy or plan sponsor of an applicable self-insured health plan determine the average number of lives covered under the policy or plan in order to calculate the PCORI fee for the year?

• If an employer provides COBRA coverage or otherwise provides coverage to its retirees or other former employees, do covered individuals (and their beneficiaries) count as ‘lives covered’ for purpose of calculating the PCORI fee?

• What exceptions to the PCORI fee apply?

• Are health insurance policies or self-insured health plans for tax-exempt organizations or governmental entities subject to the PCORI fee?

• When does the PCORI fee expire?

The Q&A is available here.