Alert / Employee Benefits
PCORI fee increases to $2.45; awaiting 2019 limits for health FSAs

Patient-Centered Outcomes Research Institute fee increase

The Affordable Care Act imposes on insurers and sponsors of self-insured medical plans an annual per-enrollee fee to fund research into the comparative effectiveness of various medical treatment options. This Patient-Centered Outcomes Research Institute (PCORI) fee is paid annually by July 31, with the payor’s IRS Form 720 for the second calendar quarter. The amount of the per-enrollee fee is adjusted for inflation.

The IRS has just announced that the PCORI fee for plan years ending on or after Oct. 1, 2018, and before Oct. 1, 2019, is equal to $2.45 per covered life, up from $2.39. 

Lockton comment: The PCORI fee will no longer apply for policy and plan years ending on or after Oct. 1, 2019. The final filing for a calendar year plan will be July 31, 2019, with respect to the 2018 plan year.

For more background on the PCORI fee and its deadlines, see our Alert from June 4, 2018.

Still waiting on health flexible spending account limits

Regulators have issued guidance updating the 2019 limits for health savings accounts and their corresponding high deductible health plans, as well as certain health reform-related limits. To date, we are still awaiting guidance related to the 2019 annual inflation adjustments for health FSAs.

Lockton comment: We will issue an Alert after the IRS announces the remaining cost-of-living adjustments (COLAs) for 2019. That is expected sometime later this week.

Not Legal Advice: Nothing in this Alert should be construed as legal advice. Lockton may not be considered your legal counsel, and communications with Lockton's Compliance Services group are not privileged under the attorney-client privilege.

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