PCORI was established by the Affordable Care Act. PCORI funds research that can help patients and those who care for them make better-informed decisions about their healthcare choices and overall wellness. The fee was originally intended to only apply to plans with terms ending after September 30, 2012, and before October 1, 2019. However, as part of the Bipartisan Budget Act of 2019, annual PCORI filing and fees were extended for an additional 10 years, through 2029.
As an employer, you may be responsible to report and pay the PCORI fee. The Affordable Care Act imposes a fee on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans, including certain HRA's to help fund the PCORI. Contact your consultant with any questions.
The fee is based on the average number of lives covered under the policy or plan. It is required to be reported only once a year on the second quarter Form 720, Quarterly Federal Excise Tax Return and paid by July 31st. Self-insured employers pay the annual PCORI fee directly to the IRS. For fully insured employers, the fee is paid by the insurance provider, although the cost may be factored into premium increases.
