As a healthcare provider or researcher, you are likely familiar with the Patient-Centered Outcomes Research Institute (PCORI) tax. This tax was established in 2010 as part of the Affordable Care Act and is designed to fund research that compares different forms of medical treatment and helps patients and healthcare providers make more informed decisions. The PCORI tax is assessed on certain health insurance policies and self-insured plans, and the funds collected go towards supporting PCORI-funded research.
If you are responsible for reporting PCORI taxes for your organization, it is important to stay up to date with the latest reporting requirements and deadlines. In this blog post, we will provide you with a guide to Form 720 reporting, which is the form used to report and pay the PCORI tax.
If you are a provider of specified health insurance policies or a plan sponsor of applicable self-insured health plans, you are likely responsible for reporting and paying the PCORI tax. Specified health insurance policies include individual and group policies, as well as Medicare Advantage and Medicaid managed care plans. Applicable self-insured health plans include any health plan that is not an insurance policy and is established or maintained by an employer or employee organization.
Form 720 is the form used to report and pay the PCORI tax. This form is typically filed on a quarterly basis, but only needs to be filed if the PCORI tax is due for the quarter.
When filing Form 720, you will need to provide information about your organization, the type of health plan you offer, and the number of covered lives for each quarter. You will also need to calculate the amount of PCORI tax due based on the tax rate and the number of covered lives.
It is important to stay up to date with the latest reporting requirements and deadlines for PCORI tax reporting. The IRS may issue updates to reporting requirements or change reporting deadlines, so it is important to check for updates regularly.
Failing to report and pay PCORI taxes can result in penalties, so it is important to stay up to date with reporting requirements and deadlines. By following the steps outlined in this guide, you can ensure that your organization stays compliant with PCORI tax reporting requirements.