AT A GLANCE
The PCORI Fee for plan years ending on or after October 1, 2022 and before October 1, 2023 will be $3.00.
What is the Patient-Centered Outcomes Research Institute (PCORI) Fee?
The Patient-Centered Outcomes Research Trust Fund fee is a fee on issuers of certain health insurance policies and plan sponsors of applicable self-insured health plans that helps to fund the Patient-Centered Outcomes Research Institute. The PCORI fee was set to expire in 2019 but was extended for an additional 10 years and will now expire the plan year ending after September 30, 2029.
What is the New PCORI Fee?
The IRS announced in IRS Notice 2022-59 that the adjusted applicable amount for the Patient-Centered Outcomes Research Institute (PCORI) fee for policy or plan years ending on or after October 1, 2022, and before October 1, 2023, will be $3.00. The PCORI fee is calculated based on the average number of lives covered under the policy or plan.
When are PCORI Fees Due?
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. This means that, for plan years ending in 2022, the PCORI fees are due by July 31, 2023. The IRS instructions for filing form 720 include information on reporting and paying the PCORI fees. Information about calculating the fee can be found on the IRS PCORI Overview page.
Employers who sponsor self-insured plans subject to the PCORI fee are responsible for completing the Form 720 filing. Current Paylocity clients with Health Reimbursement Arrangement (HRA) services through Paylocity should expect to receive an Average Covered Lives Report when the filing date nears.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.