When does the PCORI fee end?

The PCORI Fee (Patient-Centered Outcomes Research Institute Fee) was established under the Affordable Care Act (ACA) to help fund research that evaluates the effectiveness, outcomes, and risks of various medical treatments and health services. This fee applies to the following entities:

• Issuers of specified health insurance policies

• Sponsors of applicable self-insured health plans

• How It’s Filed: The PCORI fee must be reported and paid annually using IRS Form 720 (Quarterly Federal Excise Tax Return), even though it is only required once a year.

• Applicable Period: The fee applies to policy or plan years ending on or after October 1, 2012, and before October 1, 2029.

• Due Date: For employers and insurers, the deadline to file and pay the PCORI fee for the previous plan year is July 31, 2025.

• PCORI Fee Rate: For plan years ending between October 1, 2024, and September 30, 2025, the PCORI fee is $3.47 per covered life.

• PCORI Fee Calculation: The PCORI (Patient-Centered Outcomes Research Institute) fee is calculated by multiplying the average number of covered lives under a health plan by the applicable dollar amount for the plan year.

While the traditional paper-based method is still available for filing the PCORI Fee, the IRS strongly recommends using the online filing option. This is due to several advantages, including a simplified process, greater efficiency, and significant savings in both time and cost. 

However, selecting the right online portal can be a challenging decision for many filers. That’s why it’s important to choose wisely. 

WRAP:

The PCORI fee remains a key compliance requirement through 2029 for insurers and self-insured employers. Understanding the deadlines, rates, and filing methods helps avoid penalties and ensures smooth processing.