Important PCORI Deadline Information: Fees Due July 31, 2021
What is the PCORI Fee?
- The Affordable Care Act (ACA) created the Patient-Centered Outcomes Research Institute (PCORI) to study clinical effectiveness and health outcomes. To finance the nonprofit institute’s work, a small annual fee is charged on health plans.
Who pays PCORI Fees?
- Employers that self-insure a Health Plan or an HRA, and commercial group health insurance providers are responsible for paying the fee.
- It is important to note for self-funded, level funded and standalone HRA plans, the carrier will NOT remit this fee for insured groups, nor will groups be invoiced. Third-Party Administrators are prohibited under the health reform law from remitting the fee for employers. As such, self-funded groups should see the below outline of the Fee Schedule and remittance information on how to to calculate, report, and pay this fee on their own.
When are PCORI fees due and how are they calculated?
- For Plan Years that ended on or after January 1, 2020 through December 31, 2020, PCORI Fees are due by July 31, 2021.
- PCORI Fees are based on when a Plan Year ends and the number of covered lives.
|Plan Year Ending Dates||Fee Per|
|For Plan Years that END January 2020 through September 2020||$2.54|
|For Plan Years that END October 2020 through September 2021|
(Note: only Plan Years ending in 2020 are due on July 31, 2021)
How do employers report and pay the fee?
The fee is reported with IRS Form 720. Below are links to the form and instructions from the IRS.
Group clients who have questions or need additional help should contact us.