Dollar Amount Used to Determine PCORI Fee Rises to $2.26
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. Fee Increase Under 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 (up from $2.17). Click here for details on how to determine the average number of lives covered under a plan. Check out our PCORI Fees for Self-Insured Plans section for more on PCORI fees.