Out Break Period Ends on July 10, 2023

2023 heaped additional compliance burdens on plan sponsors, which include ending the 3-year-long public health emergency that accompanied the COVID-19 pandemic. The end of the “outbreak period” is July 10, 2023. Plan sponsors should have communications ready to notify plan participants and qualified beneficiaries regarding the end of the extended deadlines for COBRA election and premium payments as well as alerts regarding HIPAA special enrollment due dates. The pre-COVID compliance deadlines surrounding COBRA will resume on July 11, 2023.

Final Reminder Regarding PCORI Fee Payments by July 31

The annual PCORI fee is applicable to fully insured and self-funded plans. However, insurance carriers normally pay PCORI fees on behalf of fully insured plan sponsors. The calculation is $2.79 per covered life for plan years that ended January 1, 2022 – September 30, 2022 and $3.00 per covered life for plan years that ended October 1, 2022 – December 31, 2022. The payment for all plan years ending in 2022 is due by July 31, 2023. The tax is submitted with and reported on IRS Form 720 (opens a new window) for the second calendar quarter, under Part II.

Please Note: If you sponsor a fully insured plan which does not include any HRA or FSA, you are not required to file Form 720 or pay PCORI fees. Your insurance carrier will perform this function on your behalf.

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