Patient-Centered Outcomes Research Institute Fee (PCORI)
The new PCORI fee for 2017 is $2.26 per life for policy and plan years ending on or after October 1, 2016 and before October 1, 2017. Health insurers and sponsors of self-insured health plans are required to pay the fee and file Form 720 with the IRS by July 31, 2017.
This fee applies to all TRS-ActiveCare plans. Although the fee sounds like a small amount, it adds up quickly. TRS-ActiveCare expenses for 2015 showed over $22 million going towards paying the PCORI fee.
Transitional Reinsurance Fee
The new transitional reinsurance fee for 2016 is $27 per covered life. This is the last year for transitional reinsurance fees. It is recommended that entities retain records of their contributions for at least 10 years.
Insurers and sponsors of self-insured health plans were already required to submit the 2016 form and schedule their fee contribution by November 16, 2016. There are 2 options for payment:
- Pay the entire amount in one payment by January 17, 2017.
- Split into two separate payments, the first due by January 17, 2017, and the second due by November 15, 2017.