A $1 fee will be assessed per covered life (i.e. employees and dependents) for the first plan or policy year ending on or after 10/1/2012. Then the fee changes to $2, per covered life, for plans end after 9/30/2013. After 10/1/2013, the fee is indexed to increases in National Health Expenditures.
To determine the number of lives that the PCORI fee will cost, an employer has 3 options:
As one would imagine, there is a "special" rule for FSAs and HRAs. If the only applicable self-insured plan offered by the employer is a FSA OR HRA subject to the PCORI fee, then the employer may treat each employee's FSA OR HRA as one covered life and doesn't have to count the lives for spouses and/or child dependents. However, even though the health plan is paying the fee, it is a good point of clarification that the employer must still pay the HRA or FSA fee still.
To report the fee, employers will need to do so on their Form 720 (i.e. the quarterly tax return form), but only once per year and by July 31. IRS did clarify third parties are not permitted to report or pay the fees on behalf of plan sponsors or employers.
Polestar Benefits will provide reporting to assist the employer in assessing their fees.