Don’t miss the PCORI fee deadline of July 31
Action required: Self-funded employer groups, plan sponsors and fully insured customers with self-funded health reimbursement accounts or flexible spending accounts are required to submit IRS Form 720 and pay PCORI fees by July 31, 2021.
- Regulatory and compliance
- All states
The Patient-Centered Outcomes Research Institute (PCORI) fee helps fund research that evaluates and compares health outcomes, clinical effectiveness, risks and benefits of medical treatments and services. The fee, which is effective 2012–2029, is treated like an excise tax by the IRS.
- For plan and policy years that end on or after Oct. 1, 2020, and before Oct. 1, 2021, the PCORI fee is $2.66 per covered life.
- For plan and policy years that end on or after Oct. 1, 2019, and before Oct. 1, 2020, the PCORI fee is $2.54 per covered life.
As a reminder, the PCORI fee is assessed on all covered lives – including employees, retirees, spouses and dependents. The final PCORI fee will be due by July 31, 2021.
Fully insured groups
UnitedHealthcare will file IRS Form 720 and pay the PCORI fee for fully insured groups by July 31. UnitedHealthcare customers do not need to take any action. However, fully insured customers with self-funded health reimbursement accounts or flexible spending accounts are required to pay the fee on each employee covered under the account.
Employers and plan sponsors are responsible for submitting IRS Form 720 and paying the PCORI fee by July 31. Instructions for completing the form are posted on the IRS website. ASO groups may use one of three available counting methods:
- Actual count method
- Snapshot method
- Form 5500 method
For more information, please contact your broker or UnitedHealthcare representative.
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