News & Updates

← Back to News & Updates

Applicable Dollar Amount Used to Determine PCORI Fee Adjusted to $2.26

Nov 12, 2016

HR360, Inc.

November 8, 2016

​Increase Applies to Plan Years Ending On or After October 1, 2016 and Before October 1, 2017 

The Internal Revenue Service (IRS) recently issued ​guidance that increases the applicable dollar amount used to determine the Patient-Centered Outcomes Research Institute (PCORI) fee, for plan years that end on or after October 1, 2016 and before October 1, 2017. 

Background 

PCORI fees are imposed on plan sponsors of ​applicable self-insured health plans for each plan year ending on or after October 1, 2012 and before October 1, 2019. The fees support research to evaluate and compare health outcomes and the clinical effectiveness of certain medical treatments, services, procedures, and drugs. 

For plan years ending on or after October 1, 2015 and before October 1, 2016, the fee for an employer sponsoring an applicable self-insured plan was $2.17 multiplied by the average number of lives covered under the plan. Details on how to determine the average number of lives covered under a plan, as well as various examples, are included in ​final regulations

Fee Increase 

Pursuant to ​IRS Notice 2016-64, for plan years ending on or after October 1, 2016 and before October 1, 2017, the fee is $2.26 (multiplied by the average number of lives covered under the plan). 

For plan years ending on or after October 1, 2017 and before October 1, 2019, the fee will be further adjusted to reflect inflation. 

Visit ​PCORI Fees for Self-Insured Plans for more information.

For questions, please contact a member of your b&p Sales Team - 888.722.3373.

©2017 BEERE&PURVES
Privacy Policy