Patient-Centered Outcomes Research Institute (PCORI) Fees
The Affordable Care Act (ACA) created the Patient-Centered Outcomes Research Institute to help patients, clinicians, payers, and the public make informed health decisions by advancing comparative effectiveness research. The Institute’s research is funded, in part, by fees paid by health insurance issuers and sponsors of self-insured health plans.
PCORI fees are reported and paid annually using IRS Form 720 (Quarterly Federal Excise Tax Return). These fees are due each year by July 31 of the year following the last day of the plan year. A federal spending bill enacted at the end of 2019 extended the PCORI fees for an additional 10 years. These fees will continue to apply for the 2020-2029 fiscal years.
This ACA Overview provides a summary of the ACA’s PCORI fees. Please contact Central PA Benefit Solutions for more information.
PCORI Fees
- The ACA imposes PCORI fees on health insurers and self-insured plan sponsors.
- These fees are widely known as PCORI fees, although they may also be called PCOR fees or comparative effectiveness research (CER) fees.
- The fee originally applied to policy or plan years ending on or after Oct. 1, 2012, and before Oct. 1, 2019. However, it was extended to apply through the 2029 fiscal year.
Reporting & Paying the Fee
- The IRS’ instructions for filing Form 720 include information on reporting and paying PCORI fees.
- The payment, paid through the Electronic Federal Tax Payment System (EFTPS), should be applied to the second quarter (in EFTPS, select “Q2” for the Quarter under Tax Period on the “Business Tax Payment” page).
LINKS AND RESOURCES
Please see the following Internal Revenue Service (IRS) resources for more information on the ACA’s PCORI fees:
- Final regulations on the PCORI fees
- PCORI Fee Overview Page
- PCORI Fee: Questions and Answers
- IRS Form 720 and instructions
- PCORI Fee Due Dates and Applicable Rates
- A federal spending bill enacted at the end of 2019 extended the PCORI fees to apply for the 2020-2029 fiscal years.
Download the full PDF here – Patient-Centered Outcomes Research Institute (PCORI) Fees
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