As part of the Further Consolidated Appropriations Act of 2020 signed by the Trump Administration, PCORI fees were extended through September 30, 2029.
However, employers should keep a watchful eye, as the IRS has not updated its website to reflect the extension. The current fee is $2.45 per individual but could change once the IRS releases new information.
The PCORI fee is calculated off the average number of lives covered during the policy year. That means that all parties enrolled will have to be accounted for such as dependents, spouses, retirees, and COBRA beneficiaries.
Employers that fail to pay their PCORI fees, or pay the incorrect amount, could be subject to penalties. PCORI fees are considered an excise tax and are calculated under IRC 6651.
You can count on Corporate Coverage TPA to keep you informed of any and all announced changes as they are released.