AP Blog

By Jason Wissmiller, 08/11/2020
We often receive phone calls from clients and prospects asking for a general liability policy to satisfy an insurance requirement in a contract, such as an airport lease. Like most insurance products, clients buy an aviation general liability policy with little knowledge of what the policy actually covers. In...
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By Mark Holt, 08/03/2020
N-95 masks have been the subject of increased focus by OSHA. These masks were originally designed for industrial use in sectors such as mining, construction, painting and manufacturing. Designed to filter out airborne particulates, they have a logical place in the healthcare setting to control airborne diseases...
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By Trevor Gilstrap, 07/29/2020
Fracking is a method that has been in use for decades but has become the hot buzz word in recent years, and is the alleged cause of everything from tainted water to silicosis. Regardless of your opinion on these growing allegations, these types of lawsuits from upset citizens are increasing throughout the...
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By Chris Pavone, 07/28/2020
Trucking’s role in keeping goods, materials and the economy rolling during the global pandemic has been nothing short of phenomenal and will certainly play a role in re-establishing “normal” supply lines depleted by hoarding households and profiteering resellers. Hopefully, everyone in the...
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Growing rates of healthcare workers are experiencing physical and psychological injury as a result of workplace violence related to resident care. A staggering 95% of healthcare workers have reported exposure to aggression. However, research has found that workplace violence is underreported, signifying that...
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07/15/2020
When setting up a flying club, or managing an existing flying club, there are several things you can do to make yourself more attractive to an underwriter. By making yourself more desirable to an underwriter, you can maximize your coverage and minimize the premiums you pay. Here are our Top 10 Flying Club...
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By Nathanael Alexander, Esq., 07/14/2020
On July 8, 2020, by a vote of 7-2, the Supreme Court of the United States (SCOTUS) in their Little Sisters of the Poor decision upheld Trump administration rules permitting employers to decline contraceptive coverage (including preventative health services, birth control pills, IUDs, etc.) on the basis of...
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By Nathanael Alexander, Esq., 07/08/2020
On June 15, 2020, the Supreme Court of the United States (SCOTUS) held in Bostock v. Clayton County, Georgia that Title VII of the Civil Rights Act of 1964 bars an employer from firing an individual merely for being gay or transgender. In its ruling, the Court noted that it is “impossible to discriminate...
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By Gina Ekstam, 07/08/2020
Agribusiness worksites, shared worker housing, and shared worker vehicles present unique challenges for preventing and controlling the spread of COVID-19. Joint guidance by the CDC and DOL provides a template that employers can adapt to protect their workers. Through thoughtful planning, it is possible to...
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By Nathanael Alexander, Esq., 07/02/2020
Due to the COVID-19 pandemic, countless employees with young children have opted to utilize the time off provisions of the Families First Coronavirus Response Act (FFCRA) in order to provide care to their children in lieu of school and day care center closures nationwide. Now that schools are closed and a vast...
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2020 PCORI Fee Reminder
06/05/2020

With the annual Patient-Centered Outcomes Research Institute (PCORI) fee deadline rapidly approaching on July 31, 2020, we have certainly received an influx of inquiries regarding the IRS’ plans for that since, for an albeit brief time, the PCORI fees were thought to have gone the way of the dinosaurs. 

Originally due to sunset, PCORI fees were given a stay-of-execution by the Trump Administration with the signing of the 2020 Further Consolidated Appropriations Act, which extended PCORI for an additional 10 years. Insurers and Employers (with HRAs or any other self-funded plans) will continue to be responsible for PCORI fees until 2029 or 2030 depending upon the end date of their plan year.

From an applicability standpoint not much has changed—and, fully-insured health plans are reminded that they are still not responsible for paying PCORI. The IRS Chart found here illustrates the various health coverage types and arrangements subject to the PCORI fee.

For non-calendar year plans that ended between January 1 – September 30, 2019, PCORI fees will be due on July 31, 2020. The payment amount due according to current guidance is $2.45 per person based on the average number of covered lives under an applicable health plan. This includes not only employees but spouses, dependents, COBRA beneficiaries, and retirees as well. There are multiple IRS recommended methods that can be utilized to calculate an employer’s PCORI fees. The IRS has expounded upon the fee calculation methodologies, documentation needed (IRS Form 720), and process for remittance of payment in more detail here.

The IRS has yet to announce an updated PCORI fee amount for plan years ending between October 1 – December 31, 2019 nor has it updated its webpages to address this matter but that amount is expected to be slightly higher than $2.45 per covered member, as the rate has historically ticked up a bit annually. As such, it is currently unclear how those plans will be affected. Please continue to refer to the IRS’ PCORI Filing Due Dates and Applicable Rates chart for additional information in the interim. We will of course continue to monitor the situation and keep everyone abreast as new details emerge but it is surely possible that an extension will be granted for these plans due to the unusual delay in announcing the updated fee amounts compounded with issues pertaining to the COVID-19 pandemic. 

UPDATE JUNE 8, 2020:

The IRS, on June 8, 2020, announced the revised PCORI fee amount for plan years ending between October 1, 2019 and before October 1, 2020 via Notice 2020-44. For affected plans within this timeframe, the new amount will now be $2.54, a 9 cent increase over the previous fee. The IRS’ PCORI Filing Due Dates and Applicable Rates Chart has not been updated to correspond with the new guidance as of this posting but we anticipate that occurring soon.

Due to the anticipated termination of the PCORI fee, as discussed above, some transition relief has been offered. Issuers of specified health insurance policies ending on or after October 1, 2019 and prior to October 1, 2020 may utilize the same IRS recommended PCORI calculation methods (actual count, snapshot, member months, and state form) to determine the applicable fees. Likewise, the actual count, snapshot, and Form 5500 methods can still be used to determine the average number of covered lives. Once selected, the chosen method must be applied consistently for the duration of the plan year.