PCORI - The Patient Centered Outcomes Research Institute
No, it is not a new kind of Italian pastry! The Patient Centered Outcomes Research Institute fee is a part of the PPACA federal healthcare law. The first fee was due for virtually all group medical plans on July 31, 2013.
Who is responsible for this fee?
On fully insured plans, the insurance carrier is responsible to pay the fee and the employer/plan sponsor is responsible for paying the fee for self funded plans. IRS Form 720 is used to report and pay the fee.
Exactly what is PCORI?
The PPACA created this private non-profit corporation (PCORI). The institutes job is to research the comparative effectiveness of different types of treatment for certain diseases, and to share those findings with the public and the medical community. The goal is to improve quality of treatment and reduce unnecessary spending. The fee is to support this research.
The PCORI fee will apply from 2012 thru 2019. The fee is due by July 31 of the year following the calendar year of the plan. The fee is based on the average number of enrollees on a plan during the year. The first year fee was $1.00, second year was $2.00 and this coming year will be $2.08. Years after are scheduled to be adjusted for inflation.
We are here to help you and your plan stay in compliance with the PPACA and other regulations. If you have questions about this fee or other group insurance issues, please feel free to contact Benefit Plan Strategies (BPS) at 919-398-2600.
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This material is provided as general information and is not a substitute for legal advice.
Consult your attorney for advice concerning specific situations