The Patient-Centered Outcomes Research Institute (PCORI) fee, mandated by the Affordable Care Act (ACA), requires health insurance issuers and sponsors of self-insured health plans to report and pay an annual fee to fund patient-centered outcomes research. These fees are due by July 31st of the calendar year following the last day of the plan year. Reporting is done via IRS Form 720, specifically on Part II, Line 133. The fee amount is calculated by multiplying an annually adjusted rate (e.g., $3.22 or $3.47 for plan years ending in 2024) by the average number of "covered lives" under the policy or plan, which can be determined using methods like actual count, snapshot, or Form 5500. Employers with self-insured plans are typically responsible for filing and payment, while insurers handle it for fully insured plans.

If you’re wondering whether you need to pay the PCORI fee, you're not alone. The Patient-Centered Outcomes Research Institute (PCORI) fee is a requirement under the Affordable Care Act (ACA) and generally applies to issuers of specified health insurance policies and sponsors of applicable self-insured health plans. Employers with self-insured health plans, including HRAs, are usually responsible for this payment, while fully insured plans are typically handled by the insurance provider. The fee is reported and paid annually via IRS Form 720. Understanding your plan type and filing obligations is essential to avoid penalties and maintain compliance with ACA regulations.

Paying the PCORI (Patient-Centered Outcomes Research Institute) fee is a key compliance step for certain employers and health plan sponsors under the Affordable Care Act. This step-by-step guide walks you through the entire payment process—from determining if you owe the fee and calculating the amount, to completing IRS Form 720 and submitting payment on time. By following this guide, businesses can avoid penalties and ensure accurate reporting to the IRS while fulfilling their healthcare funding obligations efficiently.

The Patient-Centered Outcomes Research Institute (PCORI) fee is reported and paid annually using IRS Form 720, Quarterly Federal Excise Tax Return. Although Form 720 is typically a quarterly form, for PCORI fees, it is filed only once a year, specifically for the second quarter, with a due date of July 31 of the year following the last day of the policy or plan year. Most businesses opt for electronic filing through IRS-authorized e-file providers for convenience and immediate confirmation. For those who choose to mail the form, it is generally sent to the Department of the Treasury, Internal Revenue Service, Ogden, UT 84201-0009, along with any payment.

Reporting the Patient-Centered Outcomes Research Institute (PCORI) fee on IRS Form 720 is a crucial annual obligation for entities sponsoring certain health insurance policies and self-insured health plans. This excise tax, designed to fund comparative effectiveness research, requires careful calculation based on the average number of lives covered under the plan. Understanding the specific parts of Form 720 where this fee is reported, such as Part II, "Deposits of Excise Tax," and Schedule A (Form 720), "Excise Tax on Certain Health Benefits," is essential for accurate submission. Timely and correct filing by the stipulated deadline (typically July 31st of the calendar year following the last day of the policy or plan year) is vital to avoid penalties and maintain compliance with federal tax regulations.

Filing the Patient-Centered Outcomes Research Institute (PCORI) fee can seem daunting for self-funded health plan sponsors, but online platforms are revolutionizing the process. These user-friendly systems guide you through each step, from calculating the average number of covered lives to preparing and submitting IRS Form 720, ensuring accuracy and timely compliance. By leveraging online solutions, businesses can significantly reduce the complexity and administrative burden associated with PCORI filing, streamlining the process and minimizing the risk of errors or late penalties.

Automated PCORI Fee Filing streamlines the complex process of reporting and paying the Patient-Centered Outcomes Research Institute (PCORI) fee, an annual IRS requirement for sponsors of self-insured health plans. This automation helps organizations accurately calculate the fee based on covered lives, prepare and file IRS Form 720 (specifically for the second quarter by July 31st), and ensure timely payments. By leveraging automated systems, businesses can significantly reduce the risk of manual errors, avoid costly penalties, and free up valuable administrative time, ensuring seamless compliance with this ongoing healthcare mandate through 2029.

The Patient-Centered Outcomes Research Institute (PCORI) fee is an annual fee imposed by the Affordable Care Act (ACA) on issuers of specified health insurance policies and sponsors of applicable self-insured health plans. This fee helps fund the PCORI, an organization dedicated to conducting research that helps patients, clinicians, and policymakers make more informed healthcare decisions. The fee amount is based on the average number of lives covered by the policy or plan and is adjusted annually for inflation. For plan years ending in 2024, the fees are due by July 31, 2025, and are reported and paid using IRS Form 720, the Quarterly Federal Excise Tax Return, specifically for the second quarter. While insurance carriers typically handle the fee for fully insured plans, employers sponsoring self-insured plans, including Health Reimbursement Arrangements (HRAs), are responsible for calculating and submitting this fee.

The PCORI (Patient-Centered Outcomes Research Institute) fee is an annual excise tax mandated by the Affordable Care Act (ACA) to fund health research, applicable to both self-insured and fully insured health plans. Plan sponsors of self-insured plans, and sometimes employers with HRAs integrated with fully insured plans, are responsible for calculating the fee based on the average number of covered lives and reporting it on IRS Form 720. While Form 720 is a quarterly return, the PCORI fee is filed and paid annually for the second quarter, with a consistent deadline of July 31st for the preceding plan year. Online services and authorized portals are available to streamline this filing and payment process, helping ensure compliance and avoid potential IRS penalties.

PCORI fee filing software streamlines the often-complex process of calculating, reporting, and paying the Patient-Centered Outcomes Research Institute (PCORI) fee. Designed specifically to assist businesses, health plan sponsors, and insurers, these software solutions automate the aggregation of covered lives data, ensure accurate fee calculation, and facilitate the electronic submission of IRS Form 720. By leveraging such software, users can significantly reduce the risk of errors, avoid costly penalties, and ensure timely compliance with the annual PCORI fee obligations, freeing up valuable time and resources.