Do Level-Funded Plans Pay PCORI Fees?
Do Level-Funded Plans Pay PCORI Fees?
The short answer is yes. Even though level-funded plans feel like traditional insurance because of the set monthly payments, the IRS treats them as self-insured plans for tax purposes.
Under the Affordable Care Act, the PCORI fee is mandatory for all applicable self-insured health plans. Since a level-funded plan is technically a self-insured arrangement with stop-loss insurance, the responsibility for the fee falls on the employer, not the insurance carrier.PCORI Fee Due Date in 2026
The PCORI fee is an annual filing, even though it is reported on a quarterly tax form. For all plan years that ended in 2025, the deadline to file and pay is July 31, 2026.
The rate you pay depends on exactly when your plan year ended. For the 2026 filing season, the IRS has increased the rates.
Plan years ending Jan 1, 2025 – Sept 30, 2025: $3.47 per covered life.
Plan years ending Oct 1, 2025 – Sept 30, 2026: $3.84 per covered life.
The IRS requires you to file your Form 720 Online. File it
in minutes with our IRS Authorized online portal.
How to Calculate the PCORI Fee for Level-Funded Plans
in minutes with our IRS Authorized online portal.
Calculating the fee is about counting covered lives, which includes employees, spouses, and dependents. You cannot simply count the number of employees on the plan. You must use one of the IRS-approved methods, such as the Actual Count Method or the Snapshot Method, to find the average number of people covered throughout the year.
Because this math can get tricky with mid-year additions or departures, many owners find it helpful to use a dedicated calculator. You can see a full breakdown of the math in our guide on how to calculate your PCORI fee accurately.How to File the PCORI Fee?
You can file the PCORI fee either by mail or through PCORI Fee Submission Online Portal. Most businesses now prefer online filing to avoid the delays and errors common with paper forms.
With manual filing, you must download the form, complete it, sign it, and mail it to the IRS along with payment. Online platforms let you create an account, enter tax details, and finish your filing in minutes.
In 2025, many well-known brands filed their PCORI fees online through the Simple720 portal and completed even complex PCORI filings in a short time.
Why Online Filing is the Better Business Move?
Filing through an authorized portal like Simple720 takes the guesswork out of the process. Instead of hunting for the latest IRS rates or worrying about mail getting lost, you follow a guided three-step system.
You just enter your plan details and the number of people covered. The platform does the rest, ensuring your math matches the 2026 mandates. It is the fastest way to get your filing off your desk and back to running your business.
Closing thoughts
Level-funded plans bring great flexibility, but they also bring specific tax duties like the PCORI fee. Simple720 is an IRS-Authorized online portal for Form 720 filing and Form 8849 schedule claims.
File your PCORI Fee Online Now with Simple720!