The Patient-Centered Outcomes Research Institute (PCORI) fee initially applied from 2012 to 2019. However, in December 2019, the Further Consolidated Appropriations Act, 2020 extended the fee to 2029.
The PCORI fee applies to all plans that provide medical coverage to employees. Medical coverage includes preferred provider (PPO) plans, health maintenance organization (HMO) plans, point-of-service (POS) plans, high deductible health plans (HDHPs), and health reimbursement arrangements (HRAs).
Download the full Compliance Advisor for answers to frequently asked questions about the PCORI fee:
- What plans does the PCORI fee apply to?
- Does the fee apply to all medical plans?
- Who must pay the fee?
- When is the PCORI fee due?
- How much is the fee?
- What if the plan terminates?
- What if a plan is new?
- How is the fee calculated?
- May an employer change its calculation method?
- What if the employer sponsors multiple plans?
- How is the fee paid?
- Is the fee tax-deductible?
- Is there a penalty for failure to file or pay the PCORI fee?
- How does a plan sponsor correct a previously filed Form 720?
NOTE: PCORI fees for plan years ending in 2024 are due July 31, 2025 and are payable using IRS Form 720. The IRS generally publishes the updated Form 720 in early June. Once the 2025 Form 720 is available, we will notify our clients and assist in obtaining the information needed to calculate the fees.
This information has been prepared for UBA by Fisher & Phillips LLP. It is general information and provided for educational purposes only. It is not intended to provide legal advice. You should not act on this information without consulting legal counsel or other knowledgeable advisors.
