The ACA initially required either health insurance companies or plan sponsors (typically the employer) to pay three fees and taxes: the Patient-Centered Outcomes Research Institute (PCOR) fee, the reinsurance fee, and the health insurance tax (HIT). The reinsurance fee expired in 2016, and the HIT was permanently repealed for 2021and beyond. The PCOR fee was originally set to expire in 2019; however, it was extended through 2029 (i.e., for plan years ending before October 1, 2029) as a result of endof- 2019 Congressional action.
This publication provides an overview of the PCOR fee. Appendix A, PCOR Fee: Completing Form 720, provides a step-by-step guide for employers with self-insured medical plans, including level-funded plans, HRAs, and many point solution programs, to remit PCOR fees with their second quarterly filing of Form 720 (Quarterly Federal Excise Tax Return), due annually by each July 31. Appendix B, Chart of PCOR Fees, shows the PCOR fee due per covered life for recent and near future reporting years.
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