PCORI Snapshot Method - A detailed guide

The PCORI Fee must be paid by issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans every year by July 31st until 2029.

How is the PCORI Fee Calculated?

There are 3 methods to calculate the PCORI Fee,

·       The Actual Count Method

·       The Snapshot Method

·       The Form 5500 Method

In this blog, we will explore the snapshot method in detail, as it is one of the best methods for calculating the PCORI Fee

SNAPSHOT Method:

Add the total number of employees covered on a specific date (or more dates if an equal number of dates is used in each quarter) of the plan year and divide by the number of dates on which a count was made and multiply with Current PCORI fee per life

1.  Employee covered on a specific date – Count each individual who is eligible to pay the fee on the selected date.

2.  Each quarter - A three-month period on a calendar

3.  Current PCORI fee per life – The PCORI Fee for a single life in the current year is $3.47 for plan years ending after October 1, 2024, and before October 1, 2025.

Let us simplify the Formula for easy understanding,

Total Fee = (Sum of participants from designated dates in each quarter) / 4) * Current PCORI fee per life

Example = ((10+20+15+25)/4) * $3.47

               = (70/4) * $3.47

               = 17.5 * $3.47

               = $60.72

The process of calculating the PCORI Fee manually can be tedious and complex, especially for bulk filings. Simplify this task by choosing the online filing method with our IRS-approved portal, Simple720.com.

Read our blog on PCORI Fee Reporting to understand the nuances.

How to File PCORI with Simple720?

Simple720 is an IRS-approved online portal for filing the PCORI Fee. It simplifies the process by automatically performing the necessary calculations and displaying the results on your dashboard, saving you a significant amount of time.

To file the PCORI Fee with Simple720, follow our step-by-step guide:

https://www.simple720.com/blog/how-to-file-pcori-online.

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