IRS Notice 2015-60 brought some bad news to employers with health plans. The notice announced the PCORI fee will increase for health plan years that end on or after October 1, 2015 and before October 1, 2016.
The fee is rising from $2.08 per covered life to $2.17 per covered life, an increase of 4.3 percent. PCORI fee payments are due July 31 of each year. The fee is slated to expire for plan years ending by October 1, 2019.
The amount of the PCORI fee is “equal to the average number of lives covered during the policy year” multiplied by the fee amount. It’s important to note that the PCORI fee is based on “belly buttons” not the employee count. An employer and dependent child count as two (2) covered lives.
More information on the PCORI fee is available on the IRS website.
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