IRS Increases PCORI/CERF Fee for 2017
With the release of IRS Notice 2016-64, issued on Nov. 4, 2016, the IRS provided that the PCORI fee (Patient-Centered Outcomes Research Institute fee) also called the CERF fee (Comparative Effectiveness Research Fee) for plan years ending on or after Oct. 1, 2016, and before Oct. 1, 2017, including 2016 calendar year plans, is $2.26 per each person covered under the applicable health plan, up from $2.17 for the previous plan year.
As you may recall, for self-insured plans and HRAs, the Research Fee is due by July 31st of the calendar year following the end of the applicable plan year. It is paid on the 2nd quarter Form 720 filing. The next payment and filing deadline is July 31, 2017.
PCORI fees are used to fund research on patient-centered outcomes and apply to plan and policy years ending after October 1, 2012 and before October 1, 2019.
For insured plans, the insurer is responsible for paying PCORI fees and reinsurance contributions.
For self-insured plans, PCORI fees are imposed on the plan sponsor and generally cannot be paid from plan assets, while reinsurance contributions are imposed on the plan itself and may be paid from plan assets (if otherwise permitted).
- UPDATED 12/12/2017 Multi-Year Reference Chart
- 10/16/2015: IRS Increases PCORI/CERF Fee Again
- Prior AP Benefit Advisors Guidance: PCORI or CERF? Whatever you call it, remember that the IRS raised the fee
- IRS Form 720
- IRS Form 720 Instructions
- Tax Deductible. In his May 31, 2013 memorandum (released June 7th), Andrew J. Keyso, Associate Chief Counsel, concludes that the PCOR fees are tax deductible: “The required PCOR fee will be an ordinary and necessary business expense paid or incurred in carrying on a trade or business and, therefore, will be deductible under § 162.”