PCORI 2024: Deadline July 31st

Important Reminder: PCORI Fees for HRA Plans

Below is an important reminder if you 1) Offer a Health Reimbursement Account (HRA) to employees, or 2) offer Self-Insured insurance plan. If neither applies, you may disregard this message.

The Further Consolidated Appropriations Act signed into law in December of 2019 extended the PCORI Fee for another 10 years, through 2029.

All self-funded groups (including level-funded and HRA plans) will be required to report and pay the PCORI fee to the IRS through Form 720. Plan sponsors need to complete and file the IRS Form 720 by July 31, 2024 for the plan year preceding.

Prior year PCORI fees can be found here. The updated fees are noted below for employers who offer HRA plans:

• Plan years ending between 1/1/2023 – 9/30/2023: $3.00 per covered primary subscriber*
• Plan years ending between 10/1/2023 – 12/31/2023: $3.22 per covered primary subscriber*

* Covered Primary Subscriber is the employee count of the total # of employees on the HRA plan; dependents are excluded in this calculation.

How to Calculate your PCORI fee:

Once you have your HRA membership total, to calculate your PCORI Fee:

Total Medical HRA Covered Lives X Fee Per Average Covered Life = PCORI Fee.

• Actual Count method – This method requires a plan sponsor to count the actual covered lives on each day of the plan year and divide by the number of days in the plan year.
• Snapshot method – Choose one or more days during each calendar quarter, add the covered lives on those dates and divide by the number of dates used. Sponsors must use the same number of dates in each quarter, and the dates must be within three days of the comparable date in the other quarters.
• 5500 method – Sponsors who offer only individual coverage can take the number of participants reported at the beginning of the plan year, plus the number reported at the end of the plan year and divide by two. Plan sponsors who offer coverage other than individual coverage must take the number of participants reported at the beginning of the plan year, plus the number reported at the end of the plan year. Sponsors wanting to use this method should be sure the relevant Form 5500 will be filed by July 31 – extensions are not permitted.

Contact CIP for Assistance

Contact your CIP Group Account Manager, or call 617-354-0866, option 2 if you need assistance.