The Patient-Centered Outcomes Research Institute (PCORI) is an independent, non-profit research organization created to help patients and those who care for them make better-informed health decisions.
When Did the PCORI Fee Start?
PCORI, authorized by Congress in 2010, has awarded over $4.5 billion to support more than 2400 research and related projects as of April 2024.
The Further Consolidated Appropriations Act, signed into law on December 20, 2019, extended the Patient-Centered Outcomes Research Trust Fund fee for the next 10 years according to Internal Revenue Code sections 4375 and 4376.
As a result, the PCORI Fee will be imposed until 2029. This fee applies to specified health insurance policies with policy years ending after September 30, 2012, and before October 1, 2029, and applicable self-insured health plans with plan years ending after September 30, 2012, and before October 1, 2029.
Who Pays the PCORI Fee?
1) In general the health insurance providers should pay the PCORI fee for their respective policies.
2) Individual employers should pay the fee for the self-insured plan they are enrolled with.
3) Plan sponsors must pay the fee for their self-insured plan.
How is the PCORI Fee Paid?
The PCORI Fee is paid using Form 720, the Quarterly Federal Excise Tax form. This form is due on July 31st of the year following the last day of the policy or plan year.
You can file this electronically using our IRS-approved online portal, Simple 720. For more details, refer to our blog on how to file PCORI online: https://www.simple720.com/blog/how-to-file-pcori-online
To whom do the PCORI funds can be offered?
PCORI funds can be offered to any private, public, or U.S. organization recognized by the Internal Revenue Service. These organizations must provide a thorough and thoughtful justification for how their research will benefit the U.S. healthcare system.
They must also demonstrate that their engagement plans include U.S. patients and stakeholders and are relevant to the U.S. healthcare system.
Some of the entities that get benefit are, Academic Institutions, Non-profit Organizations, Healthcare Systems, Research Institutions, Government Agencies, Patient Advocacy Groups, Private Sector Entities, and Collaborative Networks.
WRAP:
After reading the blog, it is clear that PCORI is a non-profit organization that supports many organizations through its funding. Filing the PCORI Fee is always a wise choice, as it contributes to the research that benefits numerous entities within the healthcare system.
Pay PCORI Fee with Simple 720