What Are Level-Funded Plans?
A level-funded health plan is generally treated as a self-insured health plan for federal compliance purposes because the employer retains claims risk, even though costs are levelized through monthly funding and stop-loss coverage. Under IRS rules, applicable self-insured health plans are subject to the PCORI fee, and the filing responsibility rests with the plan sponsor (employer) rather than the insurance carrier.
Who Is Required to File For A Level-Funded Plan?
Level-Funded Plan Sponsors Are Responsible,
Not the Carrier
Your plan is a self-insured setup with stop-loss coverage layered on top. That makes the plan sponsor responsible for reporting and paying the PCORI fee each year.
Businesses with 100+ Enrolled Participants
Under federal rules, level-funded plans are generally treated as self-insured for compliance purposes. While these plans are commonly used by businesses with 2-500 employees, Form 5500 filing requirements are based on ERISA rules and plan size, not level-funded status. In general, plans with fewer than 100 participants are considered small plans, while those with 100 or more participants are considered large plans.
HRA Sponsors File Separately from the
Medical Plan
HRAs carry their own PCORI obligation. If your HRA runs alongside a fully insured plan, the insurer handles the medical side, and the employer files the HRA separately.
Why You Should File PCORI Fees for Level-Funded Plans Online?
Faster Processing
Electronic filing through an IRS-authorized portal submits your Form 720 significantly faster than a paper return mailed to Ogden, Utah. You get acknowledgement quickly instead of waiting weeks.
Improved Accuracy
Guided online filing reduces the chance of entering data on the wrong line or applying a rate that doesn't match your plan year.
Reduced Compliance Risk
When you file through an IRS-authorized portal, you're working with current form versions and current rates. No need to verify IRS notices yourself.
Secure Record Management
Every electronic filing you submit stays on record and can be pulled up anytime, whether you're responding to an IRS inquiry or just need to check what you filed last year.
Convenient Submission
No printer, no software download, no hassle. Open any browser, log in, and get your PCORI filing done in a single session without juggling multiple tools or tabs.
Challenges Faced When Filing PCORI Fees for Level-Funded Plans Manually
Most Employers Don't Know the Filing Falls on Them
Many employers with level-funded plans assume their carrier or TPA handles PCORI. They don't. The IRS puts the obligation on the plan sponsor, which is why late and missed filings are so common.
Covered Lives Calculation Has Multiple Methods and Room for Error
The fee is based on average covered lives over the plan year. Employees, dependents, retirees, and COBRA participants all count. Picking the right calculation method and applying it without error takes time.
Wrong Rate for the Wrong Plan Year Triggers IRS Notices
The applicable dollar amount changes annually and depends on when your plan year ends. Filing with last year's rate results in underpayment, IRS notices, and interest.
Form 720 Has Multiple Lines and No Auto-Calc for PCORI
PCORI goes on the second quarter Form 720, due July 31. Without guidance, it's easy to enter data on the wrong line or submit an outdated form version.
The July 31 Deadline Catches Busy HR Teams Off Guard
For teams managing benefits, payroll, and compliance at once, that date sneaks up fast. A missed deadline means penalties and interest.
Why File PCORI Fees for Level-Funded Plans With QuickFile720?
IRS-Authorized E-File Provider
QuickFile720 is authorized by the IRS to process PCORI Fee electronically. Your PCORI fee submission goes through an approved channel, not a workaround.
Affordable Filing
Affordable filing built for federal excise taxes without hidden fees. No expensive tax software or CPA required just to file an annual excise return.
Straightforward Interface
Select your tax category, enter your covered lives count, review the calculated fee, and submit. Most employers complete the process in under 20 minutes, even on the first filing.
SOC2-Certified Data Protection
Your business information and tax data are protected under industry-standard security protocols. Employer identification numbers and plan data stay secure.
Support When You Need It
If something in the filing process isn't clear, QuickFile720 offers customer support. You're not handed a form and left to figure it out.
All Form 720 Categories in One Place
PCORI, fuel taxes, tanning taxes, and truck excise. QuickFile720 handles all of them through one portal.
Testimonials
Finally Got This Off My Plate
I manage benefits for about 200 employees and always dreaded PCORI time. I could never confirm I was using the right rate or entering numbers in the right section. QuickFile720 walked me through each step, and I was done in under 20 minutes. No second-guessing, no IRS notices. I'll use it every year.
Simple and Exactly What We Needed
We got an IRS notice before I even knew our level-funded plan made us responsible for PCORI. QuickFile720 made catching up straightforward. I entered our covered lives, the fee was calculated automatically, and the filing went through fast. I wish I'd known about it sooner.
Reliable, Fast, and Worth It
Our compliance team was spending too much time on Form 720 filings across multiple excise tax categories. QuickFile720 handles PCORI and several others in one place. It cut our filing time down considerably, and we stopped worrying about whether the form version was current.
Your PCORI Deadline Is July 31. File Now and Move On.
If you sponsor a level-funded health plan, the PCORI fee is your obligation every year. QuickFile720 makes it fast, accurate, and straightforward. IRS-authorized. SOC2-certified.
Built for employers who would rather run their business than decipher
a federal excise tax form.