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This statement was recently made by a TPA. related to PCORI fees in 2022: Generally, health care Flexible Spending Accounts (FSAs) are not required to file a Form 720 unless the employer (and not just the employee) makes contributions to it that exceed the lesser of $500 annually or a dollar-for-dollar match of the employee's contribution. I did look as the IRS Chart chart summary. and FAQs Related Item: Patient-Centered Outcomes Research Trust Fund Fee: Questions and Answer and the final regulations , but do not see the above exception. Does anyone have insight to the above bold exception?? I did see the follow exceptions for FSAs: Special rule for coverage under multiple applicable self-insured health plans: Generally, separate fees apply for lives covered by each specified health insurance policy or applicable self-insured health plan. However, two or more applicable self-insured health plans may be combined and treated as a single applicable self-insured health plan for purposes of calculating the PCORI fee but only if the plans have: The same plan sponsor; and The same plan year. Special counting rule for HRAs and FSAs: Plan sponsors are permitted to assume one covered life for each employee with an HRA. Plan sponsors are permitted to assume one covered life for each employee with an FSA. Q5. Which individuals are taken into account for determining the lives covered under a specified health insurance policy or applicable self-insured health plan? A5. Generally, all individuals who are covered during the policy year or plan year must be counted in computing the average number of lives covered for that year. Thus, for example, an applicable self-insured health plan must count an employee and his dependent child as two separate covered lives unless the plan is a health reimbursement arrangement (HRA) or flexible spending arrangement (FSA). Thanks for you review and reply in advance!