06/28/2017

The deadline for filing  Patient Centered Outcome Research Institute (PCOR) fees is quickly approaching.

Group health plans are required to pay the PCOR fee for plan years ending on or after October 1, 2012 and before October 1, 2019.  The fee generally applies to Health Reimbursement Arrangements (HRAs) because they are considered group health plans.  Flexible Spending Accounts (FSAs) are exempt from paying the fee as long as they are considered an excepted benefit.

The fees must be filed by July 31 in the year after the plan year has ended.  IRS Form 720 should be used to report and pay the fees. The following fees apply for the 7/31/17 deadline:

• Plans ending from January through September 2016 – $2.17/covered life
• Plans ending from October through December 2016 – $2.26/covered life

For more information on the PCOR fees, please visit https://www.irs.gov/uac/newsroom/patient-centered-outcomes-research-institute-fee.

BusinessPlans, Inc. – myCafeteriaPlan does not intend to provide legal or tax advice and information contained in this article should not be interpreted as such.  Regulations governing pretax plans are often open to interpretation and should be reviewed with your legal or tax advisor before making any decisions regarding your plan.