By July 31, employers that sponsor self-funded medical plans must report and pay their PCORI fee. By July 31, employers that sponsor calendar-year employee benefit plans that are subject to ERISA must file a Form 5500 (unless an exception applies) or request an extension by filing a Form 5558.

PCORI Fee

The fee is used to fund the Patient Centered Outcomes Research Institute (PCORI). Originally, the fee was to last only 6 years, with calendar-year plans making their final payment in 2019. However, in a spending bill passed by Congress in late 2019, the PCORI fee was extended to 2029.

The amount of the PCORI fee for the relevant plan year is equal to the average number of covered lives during that plan year, multiplied by a specific dollar amount that is indexed.

• What is the relevant plan year? The plan year that ended during 2021.
• How do employers determine the average number of covered lives? Traditionally, employers have been allowed to use the actual count method, the snapshot method, or the Form 5500 method. For the PCORI fee due on July 31, 2022, employers may use any of those methods, or they may use any other reasonable method to determine the average number of covered lives.
• What is the specific dollar amount? For calendar-year plans, the specific dollar amount is $2.79. For fiscal-year plans whose plan year ended on or between January 1, 2021 and September 30, 2021, the specific dollar amount is $2.66. For fiscal-year plans whose plan year ended on or between...

Read Full Story: https://www.mondaq.com/unitedstates/employee-benefits-compensation/1211108/ju...