IRS sets PCOR fee for 2016/2017 plan years — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

IRS sets PCOR fee for 2016/2017 plan years

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If you sponsor a self-insured group health plan, including a self-insured plan that covers retirees, you’re on the hook for the Patient-Centered Outcomes Research (PCOR) fee to support medical research.

For plan years ending on or after Oct. 1, 2016, and before Oct. 1, 2017, the IRS has set the fee at $2.26, multiplied by the average number of covered lives. (Notice 2016-64, IRB 2016-46)

Warning: Some employers with insured health plans must also pay the PCOR fee.

Excepted benefits

The PCOR fee isn’t assessed against excepted benefits. What are they? Excepted benefits are the same benefits that are excluded from W-2, Box 12 reporting:

  • Employee assistance plans
  • Disease management programs and wellness programs that don’t provide significant medical care or treatment
  • Limited-scope dental and vision plans
  • Specific disease or hospital/fixed indemnity plans that employees pay for with after-tax dollars and that are offered as in...(register to read more)

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