Premium Only Plan (POP)

The IRS has released the 2025 Patient-Centered Outcomes Research Institute (PCORI) fee , which will increase to $3.47 per covered life —a $0.25 increase from 2024. This fee applies to plan years ending on or after October 1, 2024 , and before October 1, 2025 . What is the PCORI Fee? The PCORI fee was introduced as part of the Affordable Care Act (ACA) to help fund the research conducted by the Patient-Centered Outcomes Research Institute (PCORI). This research focuses on improving healthcare outcomes by comparing different medical treatments. The fee is levied on insurers, as well as self-insured and level-funded health plans. The fee is calculated based on the average number of covered lives under a plan and is due once a year, with the filing occurring during the second quarter on Form 720 , the Quarterly Federal Excise Tax Return . The payment is due by July 31 each year. Key Details for Employers and Plan Sponsors Who is Affected? : The fee applies to health insurers, self-insured health plans, and level-funded health plans. When is it Due? : The fee must be reported on Form 720 and paid by July 31 each year. How is it Calculated? : The fee is based on the average number of covered lives during the plan year. The updated $3.47 per covered life fee will be in effect for health plans with policy years ending between October 1, 2024, and October 1, 2025. Employers should be prepared to account for this increase when filing for 2025. For more information on the PCORI fee and its reporting requirements, consult the IRS Bulletin 2024-49 , published on December 2, 2024, or visit the IRS PCORI Fee page . 

As 2024 draws to a close, one question looms large for employers: What’s driving employees to switch jobs? While salary and benefits consistently top the list of reasons employees explore new opportunities, a deeper dive reveals the factors that prompt them to make the leap. Benefits: A Critical Factor in Employee Decisions For employees who changed jobs in 2024, benefits were the most significant factor influencing their decision. This highlights a gap in the quality of benefits many employers provide. While 401(k) matching is the most common benefit reported by respondents, other essential offerings are surprisingly scarce: Only 43% of respondents have health insurance through their employer. Just 35% report having access to paid time off (PTO). These numbers suggest that many companies are falling short of what employees now view as basic expectations. Flexibility: The New Workplace Priority When deciding to accept a new role, flexibility in work environment emerged as the top motivator for employees, surpassing salary for the first time. This represents a significant shift from 2023, when 68% of respondents prioritized salary above all else. Today, remote or hybrid work options are reshaping how employees evaluate job opportunities. Millennials and Gen Z, in particular, are driving this trend, as they place a high value on flexible arrangements that support their lifestyles. For Millennials, flexibility ranks as a key factor in staying with an employer—26% cited it as their primary reason for remaining in their current role. Moreover, 16% of employees across generations indicated that flexible work environments are the top reason they’re not seeking new opportunities. Flexibility Is More Than Just Remote Work Flexibility doesn’t stop at where employees work—it’s about how they work. Flexible hours on top of hybrid models and remote options can be critical to reducing burnout and improving job satisfaction. 48% of employees believe flexible work environments help prevent burnout. 40% view a lack of flexibility as a threat to positive company culture. 1 in 10 employees would leave their job solely to gain more flexibility. By offering adaptable work arrangements, employers can improve retention and create a workplace that meets the evolving needs of today’s workforce. The Role of Personalization in Benefits Younger generations are also calling for more personalized benefits packages. Standard, one-size-fits-all plans no longer meet their diverse needs. Here’s how generational preferences vary: Younger employees prioritize tuition reimbursement and student debt relief nearly twice as much as older generations. Boomers value vision benefits three times more than Millennials. These differences underscore the need for employers to offer tailored benefits that reflect the unique needs of their workforce. The Impact of Benefits Enrollment Stress A significant portion of employees (72%) find benefits selection stressful, with unclear information and difficulty comparing plans being the top pain points. This stress can have serious consequences for employers: More than half of employees indicated that a poor benefits enrollment experience would drive them to seek a new job. 50% said a negative benefits experience overall would prompt them to leave. To address these issues, companies can leverage technology that simplifies the enrollment process. Tools that offer real-time comparisons and transparent cost breakdowns can significantly enhance the employee experience (EX). Payroll Errors: A Major Employee Concern While benefits play a crucial role in retention, payroll processes remain a top area for improvement. A staggering 60% of employees reported being affected by payroll errors. This underscores the importance of getting the basics right when it comes to HR functions. Accurate and reliable payroll processes are fundamental to fostering trust and satisfaction among employees. Meeting the Evolving Needs of Employees To attract and retain top talent, employers must adapt to changing expectations. This means: Enhancing benefits : Offer comprehensive, tailored packages that address generational preferences. Improving technology : Simplify benefits enrollment and ensure payroll accuracy. Prioritizing flexibility : Embrace remote, hybrid, and flexible work models to support employees’ work-life balance. By addressing these areas, employers can build a competitive edge in recruitment and retention, ensuring they meet the needs of a diverse and tech-savvy workforce. Survey Insights The insights in this article are based on the "Voice of the Workforce" report by isolved, which analyzed responses from 1,127 full-time U.S.-based employees ranging from entry-level staff to C-suite executives. The survey was conducted online in Q3 of 2024.