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Compliance Update: PCORI Fees

The Harrison Group, Inc.

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July 12, 2013 

 

COMPLIANCE UPDATE:

Patient-Centered Outcomes Research Institute (PCORI)
Fees

for HRAs and Certain Healthcare FSAs

 

The Harrison
Group Inc. has received several calls and emails from brokers and
clients with questions pertaining to client responsibilities with
regard to the PCORI fees for HRAs and certain Healthcare FSAs. We’ve
prepared the following Q & A for your benefit. This isn’t meant to
be a comprehensive compliance guide, merely information which hopefully
makes your life a little easier. We have attached a completed sample Form 720 (only for the PCORI fee) as well as a portion of
the instructions for preparing the form. Please let The Harrison Group know if you have any questions. 

 

Q.

How much is
the fee?

A.

For
purposes of this summary the fee is $1 per covered person. There are
some exceptions. Please refer to the Form 720 instructions. You can
determine the number of total covered persons using one of the
acceptable methods described in the instructions. The simplest method
might be to add the number of participants at the end of the plan year
to the number of participants at the beginning of the plan year and
divide that total by 2. Then multiply the average by $1.

 

For example:  

Participants on 1/1/12

70

 

Participants on 12/31/12   

80

 

 

 

 

Average

75

 


The fee would then be $75.

Q.

Who must pay
the fee?

A.

Plan
sponsors of applicable self-insured health plans, such as Health
Reimbursement Arrangements and certain Healthcare Flexible Spending
Accounts.

Q.

What return
must be filed?

A.

Form 720 – Quarterly Federal Excise Tax Return

 

To
access the entire Q & A click the following to…<<read more>>.

 

The
Harrison Group will automatically provide clients with a completed Form 720 if we are administering their Health Reimbursement
Arrangement (HRA). If we are not, there will be a $150 fee to
prepare Form 720 for your client. 

 

As
always, please do not hesitate to contact us with any questions or
concerns.

 

Best
wishes for a continued safe and happy summer.

 

Sincerely,

 

Richard H. Miller, Jr., CPA, CFP

President

For More Information Contact:

Rich Miller, President

Telephone:  610.853.9075

Toll Free:  855.222.5727

Fax: 610.853.9079

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Black Stripes

 

31
South Eagle Road, Suite 205, Havertown, PA 19083  

Phone:
610-853-9075   ·   Toll Free: 855-222-5727
·   Fax: 610-853-9079

 

 

Contact

3 RAYMOND DRIVE, SUITE 201
HAVERTOWN, PA 19083
service@theharrisongrouponline.com
PHONE: 610-853-9075
TOLL FREE: 855-222-5727
FAX: 610-853-9079

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