PCORI Fee/CERF - payment schedule

Patient Centered Outcomes Research Institute (PCORI) Fee, also known as 
the Comparative Effectiveness Research Fee (CERF)
Fee periods and payment schedule

For CERF payments, ERISA plan year is important, and determines both the timing and amount of payment to the IRS. If your ERISA plan year and renewal date differ, the ERISA plan year should be used to calculate an employer's fee per covered life, and payment due date.  Absent an ERISA plan year, an employer should use the affected plan's renewal date.

·         Fee due July 31, 2017

PLAN YEAR START DATE FEE PER AVERAGE COVERED LIFE

Feb. 1, 2015–Oct. 1, 2015 $2.17

Nov. 1, 2015–Jan. 1, 2016 $2.26  

·         Fee due July 31, 2018

PLAN YEAR START DATE FEE PER AVERAGE COVERED LIFE

Feb. 1, 2016–Oct. 1, 2016 $2.26

Nov. 1, 2016–Jan. 1, 2017 To Be Determined (TBD) (Note: Amount increases by rate of medical inflation.)

·         Fee due July 31, 2019

PLAN YEAR START DATE FEE PER AVERAGE COVERED LIFE

Feb. 1, 2017–Oct. 1, 2017 TBD

Nov. 1, 2017–Jan. 1, 2018 TBD

·         Fee due July 31, 2020

PLAN YEAR START DATE FEE PER AVERAGE COVERED LIFE

Feb. 1, 2018–Oct. 1, 2018 TBD

Nov. 1, 2018–Future renewals Fee expires. No further payments required.

The CERF is self-reported on Excise Tax Form 720; and applies to:

Fully insured medical plans, including minimum premium plans; Self-insured group medical plans; Individual/family plans; Stand-alone behavioral health plans; Limited medical plans (also known as Voluntary or mini-med plans); Individuals on a temporary U.S. Visa who live in the U.S.; Medicare Surround and Medicare Expand policies; Retiree-only plans; Health Reimbursement Accounts (HRAs); and Flexible Spending Accounts (FSAs) if the employer contribution is greater than $500 and it is more than the employee contribution.

IMPORTANT:  Insurance companies remit CERF on behalf of fully insured group and individual plans.  Employers must calculate and remit CERF for self-funded plans and Health Reimbursement Arrangements (HRAs).

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