Self-insured health and HRA plans must file form; carriers pay fee on behalf of fully insured plans
Employers responsible for paying the annual Patient-Centered Outcomes Research Trust Fund fee should use the updated Form 720. The fee, a provision of the Affordable Care Act, funds the Patient-Centered Outcomes Research Institute (PCORI), which aims to help patients better understand the prevention, treatment and care options available and the science behind them.
The PCORI fee must be reported annually on the second quarter Form 720 and paid by the July 31 due date. The fee is calculated based on the average number of lives covered under the plan. Employers who file the second quarter Form 720 only to report the PCORI fee are not required to file in other quarters. For fully insured health insurance plans, the fee is paid by the carrier and collected through premiums.
Generally, plan sponsors of applicable self-insured health plans must use one of the following three alternative calculation methods to determine the average number of lives covered under a plan for the plan year.
