PCORI Fee Amount Adjusted for 2025
The Internal Revenue Service (IRS) has issued Notice 2024-83 to increase the Patient-Centered Outcomes Research Institute (PCORI) fee amount for plan years ending on or after Oct. 1, 2024, and before Oct. 1, 2025. The updated PCORI fee amount is $3.47 multiplied by the average number of lives covered under the plan.
For plan years that ended on or after Oct. 1, 2023, and before Oct. 1, 2024, the PCORI fee amount is $3.22 multiplied by the average number of lives covered under the plan.
Applicability of PCORI Fee
The PCORI fee was created by the Affordable Care Act (ACA) and first applied for plan or policy years ending on or after Oct. 1, 2012. The fee is imposed on health insurance issuers and self-insured plan sponsors to fund comparative effectiveness research. The PCORI fee was originally scheduled to expire in 2019. However, a federal spending bill extended the PCORI fee for an additional 10 years. As a result, the PCORI fee will apply through the plan or policy year ending before Oct. 1, 2029.
KEY FACTS
Covered Plans
The PCORI fees typically apply to insurance policies that provide accident and health coverage, as well as to self-insured group health plans.
Applicability Dates
The PCORI fee applies to plan or policy years ending on or after Oct. 1, 2012, and before Oct. 1, 2029.
Payment Deadline
PCORI fees are due for plan or policy years ending in 2024 on July 31, 2025.
Payment Deadline
PCORI fees are reported and paid annually on 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. For plan years ending in 2024, the PCORI fee is due
by July 31, 2025. Employers with self-insured health plans should have reported
and paid PCORI fees for 2023 by July 31, 2024.
Calculating the PCORI Fee
The PCORI fees are calculated based on the average number of covered lives
under the plan or policy. This generally includes employees and their enrolled
spouses and dependents, unless the plan is an HRA or FSA. Final rules outline a
number of alternatives for issuers and plan sponsors to determine the average
number of covered lives.
IRS Resources
The IRS provides the following resources on PCORI Fees:
- PCORI Fee Overview Page
- PCORI Fee: Questions and Answers
- PCORI Fee: Due Dates and Applicable Rates
- Chart Application of the PCORI Fee to Common Types of Health Coverage or Arrangements
This Legal Update is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. © 2024 Zywave, Inc. All rights reserved.