Medical Plans

2019 PCOR Fee Filing Reminder for Self-Insured Plans

The PCOR fee filing deadline is July 31, 2019 for all self-funded medical plans and HRAs for plan years ending in 2018.

Please note, this is the final filing and payment for some plans. Plans ending in January through September of 2019 will have one more filing on July 31, 2020. We will send a reminder next year for the final filing and payment.

The plan years and associated amounts are as follows:

(Plan Year; Amount of PCOR Fee; Payment and Filing Date):

  •  February 1, 2017 – January 31, 2018; $2.39/covered life/year; July 31, 2019

  • March 1, 2017 – February 29, 2018; $2.39/covered life/year; July 31, 2019

  • April 1, 2017 – March 31, 2018; $2.39/covered life/year; July 31, 2019

  • May 1, 2017 – April 30, 2018; $2.39/covered life/year; July 31, 2019

  • June 1, 2017 – May 31, 2018; $2.39/covered life/year; July 31, 2019

  • July 1, 2017 – June 30, 2018; $2.39/covered life/year; July 31, 2019

  • August 1, 2017 – July 31, 2018; $2.39/covered life/year; July 31, 2019

  • September 1, 2017 – August 31, 2018; $2.39/covered life/year; July 31, 2019

  • October 1, 2017 – September 30, 2018; $2.39/covered life/year; July 31, 2019

  • November 1, 2017 – October 31, 2018*; $2.45/covered life/year; July 31, 2019

  • December 1, 2017 – November 30, 2018*; $2.45/covered life/year; July 31, 2019

  • January 1, 2018 – December 31, 2018*; $2.45/covered life/year; July 31, 2019

* Final Due Date/Payment for these Plan Years

For the Form 720 and Instructions, visit: https://www.irs.gov/ forms-pubs/about-form-720

The information is reported in Part II.

Please note that Form 720 is a tax form (not an informational return form such as Form 5500). As such, the employer or an accountant would need to prepare it. Parties other than the plan sponsor, such as third-party administrators, cannot report or pay the fee.

Short Plan Years

The IRS issued FAQs that address how the PCOR fee works with a self-insured health plan on a short plan year.

Does the PCOR fee apply to an applicable self- insured health plan that has a short plan year?

Yes, the PCOR fee applies to a short plan year of an applicable self-insured health plan. A short plan year is a plan year that spans fewer than 12 months and may occur for a number of reasons. For example, a newly established applicable self-insured health plan that operates using a calendar year has a short plan year as its first year if it was established and began operating beginning on a day other than Jan. 1. Similarly, a plan that operates with a fiscal plan year experiences a short plan year when its plan year is changed to a calendar year plan year.

What is the PCOR fee for the short plan year?

The PCOR fee for the short plan year of an applicable self- insured health plan is equal to the average number of lives covered during that plan year multiplied by the applicable dollar amount for that plan year.

Thus, for example, the PCOR fee for an applicable self- insured health plan that has a short plan year that starts on April 1, 2018, and ends on Dec. 31, 2018, is equal to the average number of lives covered for April through Dec. 31, 2018, multiplied by $2.45 (the applicable dollar amount for plan years ending on or after Oct. 1, 2018, but before Oct. 1, 2019).

See FAQ 12 & 13, https://www.irs.gov/affordable-care-act/ patient-centered-outcomes-research-trust-fund-fee-questions- and-answers

* This document is designed to highlight various employee benefit matters of general interest to our readers. It is not intended to interpret laws or regulations, or to address specific client situations. You should not act or rely on any information contained herein without seeking the advice of an attorney or tax professional. ©2019 Emerson Reid, LLC. All Rights Reserved. CA Insurance License #0C94240. *