United States

Plan sponsors must pay health plan fee by July 31, 2016

TAX BLOG  | 

The patient-centered outcomes research (PCOR) fee on health plans for plan years ending in 2015 is due by July 31, 2016. The plan sponsor must pay the fee if the health plan is self-insured, whereas the insurance company pays the fee for insured plans.

The fee applies to all types of employers, including tax-exempt organizations and governmental entities. Most health plans, including major medical, prescription drug and retiree-only plans, are subject to the PCOR fee regardless of the number of plan participants.

Special rules apply to Health Reimbursement Accounts (HRAs) and Health Flexible Spending Accounts (FSAs). The fee is based on the average number of employees, spouses and dependents covered by the plan and is up to $2.17 per covered person. PCOR fees are reported on Form 720, Quarterly Federal Excise Tax Return, which must be filed each year by July 31. 


Jill Harris

Senior Director

Jill helps businesses with planning and compliance for employee welfare and retirement plans. She can be reached at jill.harris@rsmus.com.

Areas of focus: Washington National TaxAffordable Care Act