As part of the ACA, employers with a level-funded/self-funded plan must pay an annual fee to the IRS to help fund PCORI. These fees are due each year by July 31 of the year following the last day of the plan year. For plan years ending in 2020, the PCORI fees are due by Aug. 2, 2021 (since July 31, 2021, is a Saturday).
What do you need to do?
- Calculate your fees, then report and pay the fees by August 2, 2021.
Step one: Calculate your number of lives
- The fee is calculated based on the average number of lives covered under the policy or plan. There are multiple counting methods allowed by the IRS. Click the “How to Count Lives” attachment or go here.
- Aetna AFA: Please see attached for guidance on finding Aetna reports to calculate the number of lives.
- Humana LFP: Please see attached Humana flyer on how to pull your monthly enrollment counts.
- All Savers: All Savers will send you a notice in mid-June to you to help you calculate the lives and fee.
Step two: Calculate the fee to be paid
- We have attached a PCORI fee tax estimator for you to use. Simply enter your lives and the fee, and the total will be calculated.
- Click here for details and fees and here for a FAQ.
Step three: Complete the 720 Form and pay the fee
- PCORI fees are reported annually using IRS Form 720 (Quarterly Federal Excise Tax Return). The form instructions are here.
- You can pay the PCORI fee online at: https://www.irs.gov/uac/eftps-the-electronic-federal-tax-payment-system
This website provides only a simplified description of coverages and is not a statement of contract. Coverage may not apply in all states. For complete details of coverages, conditions, limits, and losses not covered, be sure to read the policy, including all endorsements, or prospectus, if applicable. Coverage CANNOT be bound, amended, or altered by leaving a message on, or relying upon, information in this website or through email.