PCORI Fees Due to IRS No Later Than July 31

Fees to fund the Patient-Centered Outcomes Research Institute (PCORI) are due to the IRS no later than July 31, 2019 from employers who sponsor certain self-insured health plans, which includes all level funded as well as health reimbursement arrangements (HRAs) that are not treated as excepted benefits.

How to Pay PCORI Fees

Employers that sponsor certain self-insured health plans (Level Funded) must report and pay the required PCORI fees via IRS Form 720 along with HRA plans, Quarterly Federal Excise Tax Return. Complete Part II, line 133. Employers should note “2nd Quarter” on the 720 form.

The fee applies to each Plan year that ends after October 1, 2012, and before October 1, 2019. “Plan year” refers to the plan year for your Level Funded Medical Plans or an HRA plan. Generally the plan year and the coverage period are the same. As an example, if your HRA benefit resets each January 1, your HRA plan year and your coverage period are generally a calendar year and end December 31.

Plan Year Ending Date Fee
October 1, 2017 – September 30, 2018 $2.39
October 1, 2018 – September 30, 2019 $2.45

There are three available methods that can be used to determine the average number of lives covered under a plan for the policy year. For an HRA plan it is acceptable to use the number of subscribers only. The most commonly used method is the Snapshot Method.

  1. Actual Count Method: A plan sponsor may determine the average number of lives covered under a plan for a plan year by adding the totals of lives covered for each day of the play year and dividing that total by the total number of days in the plan year.
  2. Snapshot Method: A plan sponsor may determine the average number of lives covered under an applicable self-insured health plan for a plan year based on the total number of lives covered on one date (or more dates if an equal number of dates is used in each quarter) during the first, second or third month of each quarter, and dividing that total by the number of dates on which a count was made.
  3. Form 5500 Method: An eligible plan sponsor may determine the average number of lives covered under a plan for a plan year based on the number of participants reported on the Form 5500, Annual Return/Report of Employee Benefit Plan, or the Form 5500-SF, Short Form Annual Return/Report of Small Employee Benefit Plan.

Payments should be made payable to the U.S. Treasury and sent by July 31, 2019 to the applicable address on the attached instructions.

Tools to Assist you by Carrier:

All Savers

All Savers posts the employer group’s membership information to the employer website. The employer group is required to complete and file the IRS Form 720. For general questions please contact All Savers Broker Services at 1-866-405-7174.

Humana Level Funded

Click here.

Aetna Funding Advantage

This link takes you to your Producer World login and will assist in determining the fee due by your group.

LIVE TRAINING: Aetna’s AFA Springboard System

Cornerstone invites you to attend training on Aetna’s AFA Springboard System at the Cincinnati office!

Please join us for an overview of the Aetna Springboard process for new business submissions, presented by Aetna’s Jordan Finley and Lauren Horley.

DATE: Monday June 24, 2019

TIME: 2:00–3:30 pm

LOCATION: Cornerstone’s Cincinnati Office

2101 Florence Ave Cincinnati, OH 45206

Click here to RSVP.

SOCIAL SECURITY SPOTLIGHT: Filing for Retirement Benefits When You Have a Child Who is Disabled

Social Security Solutions, LLCIf you have a child who was disabled prior to age 22 and has never worked, you may want to consider starting your Social Security benefits at full retirement age or, in some cases, as early as age 62. The disabled child is eligible for half of your full retirement age benefit up to the family maximum.

For example, I recently had a client (born November 1952) who attained full retirement age in November 2018 (age 66). His full retirement age benefit was $2,858 per month starting November 2018. His child, who has been mentally and physically disabled since birth, would receive $1,429 per month, effective November 2018. The family maximum on his account was $4,500 per month, so his benefit ($2,858) plus the child’s benefit ($1,429) would be paid starting November 2018 ($51,444 per year). They would draw about $205,776 by age 70. The child’s benefit continues until his or her death.

This doesn’t work for everyone, but it is something to consider if you have a child who is disabled and you are approaching retirement age. For more information, contact me to discuss your situation.

For more information please contact me.

About Dennis Heywood

Denny’s career with Social Security provides an in-depth, working knowledge of the Social Security Administration’s internal organization and processes. An expert in all phases of SSA programs: retirement, survivor, disability, and Medicare, Denny has expertise with the complex Social Security regulations based on more than 40 years of experience.

ss-help.com

Medical Mutual Has Extended The Mid-Size Group Volume Bonus Program

Medical Mutual has extended their Mid-Size Group (51–99) Volume Bonus Program for the period from July 1 to December 31, 2019. This program pays a per-employee per-month bonus on 51–99 group contracts with effective dates through December 31, 2019, as follows:

Tier Mid-size Group Book of Business Bonus Amount
1 75-199 contracts $4 per employee per month
2 200-349 contracts $7 per employee per month
3 350-499 contracts $10 per employee per month
4 500+ contracts $13.50 per employee per month

As a reminder, the Small Group (1–50) Volume Bonus Program is in effect through Dec. 31, 2019.

Click here for more information about the Mid-Size Group Bonus Program.

If you have any questions, please contact your Cornerstone representative.

Cornerstone is a Top Workplace for the Fifth Year in a Row!

We did it again!

For the fifth year in a row, Cornerstone has been named a Top Workplace by The Cincinnati Enquirer.

The Top Workplace honors are awarded based solely on employee feedback gathered through an administered third-party survey. We continue to keep our top-ten standing, ranking #8 out of the 60 small businesses on the list this year.

Our exceptional employees are the driving force behind this accomplishment. Cornerstone fosters a culture of empowering our employees and creating pathways to success. Everyday we diligently work to satisfy our mission to be your trusted partner in solving complex benefit challenges.

“Every Cornerstone team member is committed to our culture. Each day, together, we determine the best solution for our partners who deserve to have their high expectations fulfilled. Every empowered member of our team of A+ players demonstrate examples of ‘perfect service’. Thank you to all who contribute to our continued success!”

Jennifer Agnello, President of Cornerstone

UPDATE: New IMQ From Aetna Funding Advantage

Aetna Funding Advantage has restructured their Individual Medical Questionnaire (IMQ) to make the process easier. The new IMQ can  now be accessed on Producer World.

Aetna clarified conditions and created high-level buckets of conditions to make it easier for members to review and answer questions on their health history.

You can start using the new small group AFA IMQ today. Starting September 1, 2019, Aetna will no longer accept the old IMQ.

Click here to access the Aetna AFA Medical and Stop Loss Employee Enrollment/Change Form