The IRS recently issued FAQs on the Patient-Centered Outcomes Research Institute Trust Fund fee (PCORI fee). These FAQs provide basic information on the PCORI fee, including what the fee is for, when it is effective and which plans and issuers are subject to the fee. The FAQs also explain how the fee is calculated and provide applicable dollar amounts for each year the fee is effective.
The PCORI fee is based on the average number of lives covered during the year. The FAQs provide detail on how the average number of lives is determined. They also provide clarification on fees for self-insured plans with short plan years.
Since the ACA requires health insurance issuers and sponsors of self-insured health plans to pay the PCORI fee, the FAQs also provide information on how to do so using Form 720 and how to correct previously filed Forms 720 if an error was made (including an overpayment).