2FA for P&A Participants
COBRA, Commuter Benefits, Parking, Participant, Reimbursement Accounts, Savings Accounts, Transit
If your organization provides a Health Reimbursement Arrangement (HRA) or Medical Expense Reimbursement Plan (MERP), the upcoming deadline to file the 2023 PCORI fees is quickly approaching. Employers who offer either of these plans must submit the annual PCORI fee by July 31, 2024. The deadline applies to all plans that ended in 2023.
What is PCORI?
PCORI, or the Patient Centered Outcomes Research Institute, was first introduced in the 2010 Affordable Care Act (ACA) to help fund research for different medical treatments. A portion of the institute’s funding come from these fees imposed on group health plans. PCORI fees apply to plans ending in years 2013 through 2029 (October 1, 2012 – September 30, 2029).
Understanding Your Responsibility: What’s Required of You
Employees/Participants
Participants enrolled in an HRA or MERP plan are not required to do anything for this filing.
Employers – PCORI Fees Due in 2024
- Employers are responsible for determining the number of lives covered. To calculate the number of covered lives, P&A clients can download a report in HR Connect, P&A’s secure employer portal. Once logged into HR Connect, go to “Archived Reports,” select the applicable plan year and download the report labeled “MonthlyAccount_Balance.”
- Employers must file and pay the fee owed by the annual filing due date or risk an IRS penalty. All employers are required to pay the fee, including government entities and church organizations. Third Party Administrators (TPAs), like P&A, are not permitted to file on behalf of their clients. The fee and filing must be completed by the plan sponsor or employer.
- For plan years ending in 2023, the fee per covered life is either $3.00 or $3.22, depending on your plan’s start and end date. Click here for the updated PCORI fee and payment schedule.
Tasks to Complete for the Annual PCORI Filing
Employers must complete Form 720 and send the annual fee owed to the IRS. You’ll find instructions on how to complete the form and provide payment in Form 720.
Pro Tip: While Form 720 is labeled “Quarterly Federal Excise Tax Return Form,” the fee still occurs on an annual basis.
If you have any questions about the PCORI filing and fee, please contact your P&A Client Support Specialist or submit an inquiry to P&A Group.
