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

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