Updated – IRS Introduces Updated Form 720 for Reporting PCOR Fees – PCORI Fees
The IRS has released a revised Form 720 (Quarterly Federal Excise Tax Return) due July 31, 2013, which now includes a section for reporting the PCOR (Patient Centered Outcome Research) fees required to be paid by group health plans.
Along with the updated form, an instruction guide is available with additional information on the various methods available for calculating the fees, as well as the special calculation available for the first year.
The first set of PCOR fees is due by July 31, 2013 for plan years ending between October and December 2012. Fees are then due by July 31 of the year following the end of the plan year.
The fees are $1 per covered life for plan years ending before October 2013; $2 per covered life for plan years ending before October 2014; and will be adjusted accordingly for the remaining years. PCOR fees apply to plans ending after October 1, 2012 and before October 1, 2019.
Forms must be completed and filed by the plan sponsor. The regulations specifically state that Third Party Administrators (TPAs) may not complete the form and file on behalf of the plan sponsor.
The issuer of a fully insured policy is responsible for paying the fees for that policy.
While myCafeteriaPlan may not complete the filing on your behalf, we are here to assist with the process and provide any data you may need to meet this requirement.
For additional information on the PCOR fees or PCORI fees including background and determining if you are required to pay the fees, please visit our website at www.myCafeteriaPlan.com.
Please follow up with you Account Representative with any additional questions.
Click on the link below for a copy of the form.
The complete instructions for From 720 can be found by clicking on the link below.