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Week of June 4th | SSG Insights

PCORI’s effect on HRAs and FSAs

The Affordable Care Act (ACA) requires health insurers and sponsors of self-funded group health plans to pay the Patient-Centered Outcomes Research Institute (PCORI) fee using IRS form 720.

The fee, when applicable to a Health Reimbursement Arrangements (HRA) or a Health Care Flexible Spending Account (FSA), is paid by the employer that sponsors these plans and is based on the number of covered lives under the HRA or Health Care FSA.


IRS Releases Updated Form 720 for PCORI Fees

Each year, employers must wait for the IRS to update Form 720 to pay their Patient-Centered Outcomes Research Institute (PCORI) fees using the correct form. The IRS has released a revision to IRS Form 720, which is used to pay the PCORI fees due July 31, 2021.

The original PCORI fee requirement applied to plan years ending between 10/01/2012 through 09/30/2019, but was extended an additional ten years as part of the Further Consolidated Appropriations Act, 2020. This requirement now applies to plan years ending until 09/30/2029.


EEOC Issues New FAQs on COVID-19 Vaccine Programs & Incentives

On May 18, 2021, the Equal Employment Opportunity Commission (EEOC) updated and added new frequently asked questions (FAQs) to its existing guidance on the coronavirus (COVID-19) pandemic and employer restrictions under federal fair employment laws. The updated and new FAQs address mandatory and voluntary vaccine policies and whether employers may offer incentives for employees and their family members to receive vaccines. This Compliance Overview contains the updated and newly added FAQs.