July 19, 2022

Under the ACA, self-insured health plan sponsors and health insurers must pay annual fees to fund the Patient-Centered Outcomes Research Trust Fund (PCORTF) by July 31 each year. The fees, along with payments from the Medicare program, help fund the Patient-Centered Outcomes Research Institute (PCORI). The PCORTF fees were extended for 10 years through 2029 by the Further Consolidated Appropriations Act, 2020, enacted in December 2019. In IRS Notice 2022-04, the Internal Revenue Service (IRS) announced for plan years ending on or after September 20, 2021 and before October 1, 2022 (i.e., the 2021 plan year for calendar year plans), the PCORTF fees will be $2.79 multiplied by the average number of covered lives – an increase from the 2020 rate of $2.66.

The FAQs address multiple scenarios where an eligible employee may use FMLA related to a mental health condition, including:

Upcoming Deadline

Employers must use IRS Form 720 to report and make payments for the 2021 plan year by August 1, 2022 (since July 31 falls on a Sunday).

Resources

• IRS: Q&As on PCORTF Fees
• IRS: About Form 720

If you have questions, comments, or concerns about these or other regulatory and compliance issues, please contact us.

We provide this material for informational purposes only; it is not a substitute for legal advice.

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