Upcoming July 31st Deadline for PCORI Fee Payment

The Affordable Care Act (ACA) introduced an annual fee on insurers and self-insured plan sponsors to help fund the Patient-Centered Outcomes Research Institute, often referred to as the “PCORI fee.” The fee has been in effect for several years, and the next payment deadline is fast approaching: July 31, 2018. This deadline includes, for example, payments due for the calendar year plan year that ended on December 31, 2017. 

The 2017 PCORI fee for calendar year plans is equal to the average number of lives covered under the plan for 2017 multiplied by $2.39. This is a slight increase from last year. Self-insured plan sponsors should use IRS Form 720 (Quarterly Federal Excise Tax Return) to report and pay the fee. Insurers are responsible for paying the PCORI fee for insured plans.

Lastly, on a positive note, the 2018 plan year will mark the final scheduled year for the PCORI fee, so self-insured sponsors of calendar year plans will have one final payment to make by July 31, 2019.

The IRS website provides helpful information concerning the PCORI fee.