Reminder: PCORI Fees are Due July 31

The signing of the Further Consolidated Appropriations Act, 2020 at the close of 2019 provided an extension of the Affordable Care Act’s (ACA) Patient-Centered Outcomes Research Institute (PCORI) fees through September 20, 2029. 
 
All Employers should pay the tax for all employees covered in self-funded plans.
 
Your insurance carrier is responsible for paying the tax on underlying plans that are fully insured.   
 
For plan years ending on or after October 1, 2022, and before October 1, 2023, the tax is equal to $3.00 per covered employee. 
For plan years ending on or after October 1, 2023, and before October 1, 2024, the tax is equal to $3.22 per covered employee. 
 

What are PCORI Fees?

Under the Affordable Care Act (ACA), most employer sponsors and insurers are required to pay PCORI fees until 2029, as it applies to plan years ending on or before September 30, 2029.

The PCORI fee imposed on sponsors of a self-insured health plan is based on the average number of lives covered under the plan. That means plan sponsors must account for all parties enrolled in their respective plan- including dependents, spouses, retirees, and COBRA beneficiaries.

The PCORI fee is paid annually and is due on July 31st. Fees are due on July 31 of the year following the last day of policy or plan year.

Employers that sponsor self-insured group health plans must report and pay PCORI fees using the newly released (Rev. June 2021) IRS Form 720, Quarterly Federal Excise Tax Return. The IRS states that the fee should be paid using the Electronic Federal Tax Payment Systems (EFTPS).

PCORI stands for Patient-Centered Outcomes Research Institute and is federally funded organization that was established through the 2010 Patient Protection and Affordable Care Act.

PCORI fees were originally slated to end in 2020, but under the Further Consolidated Appropriations Act of 2020, signed into law on December 20, 2019, PCORI fees were extended for another 10 years.

As a result of this extension, the Patient-Centered Outcomes Research Trust Fund fee will continue to be imposed through 2029.