PCORI Fee Calculation
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Under PPACA, the nonprofit Patient-Centered Outcome Research Institute (PCORI) was formed. PCORI was created to research and evaluate clinical effectiveness of medical treatments. The PPACA stipulates that this entity will be funded in part by the PCORI fee. The fee is imposed on insurers issuing health insurance policies and on employers sponsoring self-insured health plans, including HRAs. The rule applies to policy and plan years ending on or after October 1, 2012 and before October 1, 2019.

PCORI Fee Calculation services include:

  • Calculation of the average number of lives subject to the fee for the HRA plan year.
  • Calculation of the PCORI fee due based on the average number of lives times $1 or $2 per employee, depending on the plan year-end date.
  • Sterling will then provide to the employer the total fee due, the IRS Form 720 that the employer must complete when submitting payment to the IRS, and instructions on how to complete the filing and make payment. We cannot complete Form 720 or process the payment to the IRS.