And just what is this PCORI fee, you wonder?
Well, it’s an acronym for the Patient-Centered Outcomes Research Institute, which “funds studies that can help patients and those who care for them make better-informed healthcare choices.”
Anyway, the ACA requires health plans, including employers with Health Reimbursement Arrangements (HRAs) to pony up these fees each year. And they can add up, too; as FlexBank notes:
“The IRS has announced the applicable PCORI fee is $2.54 for HRA plan years ending on or after October 1, 2019 and before October 1, 2020.”
While that may not seem like a lot, it adds up: the Feds estimate that upwards of 11 million folks are covered by these plans, so we’re really talking about almost $28 million.
Not too shabby.
Anyway, the fee is due no later than July 31 of the calendar year immediately following the last day of your HRA plan year.
And now you know.