Compliance Corner
June 8, 2021

COVID-19 Updates

COVID-19-Related Benefits Compliance Resources Available


Podcast Episode 104: Legislative Proposals Aimed at Rising Prescription Drug Costs
June Get Wise Wednesdays – Register Now
Reminder: Form 5500 Filing for Calendar Year Plans Due July 31
Reminder: PCOR Fee, Form 720 Filing Due July 31

Healthcare Reform

Agencies Issue FAQs Concerning 2022 Out-of-Pocket Limits
IRS Releases 2021 Draft Versions of 6055 and 6056 Informational Reporting Forms

Federal Health Updates

IRS Letter Addresses Deductibility of In Vitro Fertilization Expenses
EEOC Adds New FAQs Regarding COVID-19 Vaccinations

Retirement Updates

IRS Updates Operational Compliance List for 2021 and 2022

State and Territory Updates



FAQ: What is a “minimum essential coverage” (MEC) plan? Can an applicable large employer offer an MEC plan to comply with the employer mandate?


Podcast Episode 104: Legislative Proposals Aimed at Rising Prescription Drug Costs

In this episode, Suzanne Spradley and Chase Cannon discuss rising prescription drug costs as a challenge for employers and consumers. Suzanne begins with an overview of the issue at a federal and state level, and then digs into state proposals addressing drug price transparency and affordability review boards. Chase and Suzanne then look at drug importation and other programs aimed at sourcing drugs in different countries, primarily Canada. Suzanne closes with a discussion on the role pharmacy benefit managers play in prescription drug pricing and costs.

Every other week, NFP's legal experts make the subject of compliance personal for a wide audience. By breaking down the daunting details of emerging policies and bridging the gap between legislation and what it means for the listener, Chase Cannon and Suzanne Spradley make compliance issues relatable and relevant. Visit our Soundcloud page every two weeks for the most up-to-date episode.

Listen on Google Play Music

June Get Wise Wednesdays – Register Now

As we approach the mid-way point of 2021, join us as we discuss compliance matters year to date. We will highlight benefits compliance hot topics with a preview of what may be on the horizon. Our discussion will include the American Rescue Plan Act of 2021 (ARPA), including COBRA premium assistance best practices and practical application, an update on the status of the ACA and California v. Texas (US Supreme Court case), any new guidance stemming from the Consolidated Appropriations Act of 2021 (CAA) provisions, and more.

Benefits Compliance: 2021 Mid-year Check-in
June 16, 2021
2:00 to 3:00 p.m. CT (3:00 to 4:00 p.m. ET)

Register Now

A recording will be posted to the NFP Webinars Page within 48 hours of the live webinar. Those listening to a recorded webinar aren’t eligible for recertification credit.

All programs are pending approval for 1.0 (general) recertification credit hour toward PHR, SPHR and GPHR recertification through the HR Certification Institute. For more information about certification or recertification, visit the HR Certification Institute website at

Reminder: Form 5500 Filing for Calendar Year Plans Due July 31

Applicable plan sponsors must file Form 5500-series returns on the last day of the seventh month after their plan year ends. As a result, calendar-year plans generally must file by July 31 of this year (reporting on the 2020 plan year). (Keep in mind, though that the actual due date will be August 2, 2021, since July 31 falls on a Saturday.) Plans may request a two-and-a-half-month extension to file by submitting Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, by that plan's original due date.

As a reminder, group health plans sponsored by a governmental or church entity aren’t required to file a Form 5500, as those plans aren’t subject to ERISA. Additionally, unfunded, insured or combination unfunded and insured health plans with fewer than 100 participants on the first day of the plan year are also exempt from the filing.

NFP has vendors available to assist with filings. Please ask your advisor if you need assistance.

Forms 5500 and Instructions »
Form 5500 EFAST2 »
Form 5558, Extension of Time »

Reminder: PCOR Fee, Form 720 Filing Due July 31

The ACA imposed the PCOR fee on health plans to support clinical effectiveness research. The PCOR fee applies to plan years ending on or after October 1, 2012, and before October 1, 2029. The PCOR fee is generally due by July 31 of the calendar year following the close of the plan year. (Keep in mind, though that the actual due date will be August 2, 2021, since July 31 falls on a Saturday.)

PCOR fees are required to be reported annually on Form 720, Quarterly Federal Excise Tax Return, for the second quarter of the calendar year. Plan sponsors that are subject to PCOR fees but no other types of excise taxes should file Form 720 only for the second quarter. No filings are needed for the other quarters for such employers.

The PCOR fee is generally assessed based on the number of employees, spouses and dependents that are covered by the plan. For plan years ending in 2020 on or before October 1, 2020, the fee was $2.54 multiplied by the average number of lives covered under the plan. For plan years ending between October 1, 2020, and October 1, 2021, the fee increased to $2.66. Form 720 and corresponding instructions were revised to reflect the increased fee.

The PCOR fee can be paid electronically or mailed to the IRS with the Form 720 using a Form 720-V payment voucher. According to the IRS, the fee is tax-deductible as a business expense.

As a reminder, the insurer is responsible for filing and paying the fee for a fully insured plan. The employer plan sponsor is responsible for filing on a self-insured plan, including an HRA. A stand-alone dental or vision HRA would be excepted and wouldn’t be subject to the PCOR fee.

Form 720 »
Form 720 Instructions »