Q: Under PCOR tax of $1 per "belly button," our carrier will pay that for us under our "fully insured" plan. However, we hear that we must pay PCOR on employees who are on our MERP for part of their deductible. Isn’t this double taxation?
All non-exempt health plans are subject to the PCORI fee – including MERP benefits.
While PCORI does allow a plan sponsor to pay only once on multiple self-funded arrangements running on the same plan year, there can be instances where two different employer plans can be subject to the fee – if one is insured and one is self-funded. In this particular example, the fee will be paid on some individuals twice.
Question submitted by Trudi