As a reminder, employer groups offering a Health Reimbursement Arrangement (HRA) are required to pay the annual Patient-Centered Outcomes Research Institute (PCORI) trust fund fee to the IRS by July 31, 2024.

The PCORI fee, established by the Affordable Care Act (ACA), is instrumental in supporting research that advances evidence-based medicine, such as clinical trials. It applies annually to issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans, including HRAs. Please note that this fee is scheduled to be phased out by September 30th, 2029, with the final payment due on July 31st, 2030.

Below are some key details regarding the PCORI fee:

• An HRA is considered a self-funded plan, thus the fee applies to all employer groups offering HRA plan(s).
• The fee amount is $3.22 per participant for policy and plan years ending on or after October 1, 2023, and before October 1, 2024.
• This amount represents an adjustment from the previous fee of $3.00 per participant. Please note that the fee may increase each fiscal year, as it is determined by the value of national health expenditures.
• Employers should complete IRS Form 720 to indicate the number of HRA plan participants. When calculating the average number of covered lives, both covered individuals and their beneficiaries should be taken into account.

The payment is made through the Electronic Federal Tax Payment System (EFTPS).

For more information, please refer to the following links on the IRS website:

• PCORI Fee Questions & Answers
• Application of PCORI Fee to Common Types of Health Coverage/Arrangements

You may also ask for assistance from your vendor partner when completing IRS Form 720.