PCORI Tax due by July 31, 2019 for Self-Insured Plans

PCORI FEES

The ACA imposes PCORI fees on health insurers and self-insured plan sponsors.

  • These fees are widely known as PCORI fees, although they may also be called PCOR fees or comparative effectiveness research (CER) fees.

  • The fee applies to policy or plan years ending on or after Oct. 1, 2012, and before Oct. 1, 2019.

REPORTING & PAYING THE FEE

  • The IRS’ instructions for filing Form 720 include information on reporting and paying PCORI fees.

  • The payment, paid through the Electronic Federal Tax Payment System (EFTPS), should be applied to the second quarter (in EFTPS, select “Q2” for the Quarter under Tax Period on the "Business Tax Payment" page).

  • For plan years that ended between January 1, 2018 and September 30, 2018, the fee is $2.39 per covered life and is due by July 31, 2019.

  • For plan years that ended between October 1, 2018 and December 31, 2018, the fee is $2.45 per covered life and is due by July 31, 2019.

The Affordable Care Act (ACA) imposes a fee on health insurance issuers and plan sponsors of self-insured health plans to help fund the Patient-Centered Outcomes Research Institute. The fee, called the Patient-Centered Outcomes Research Institute (PCORI) fee, is calculated based on the average number of lives covered under the policy or plan. 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 2018, the PCORI fees are due by July 31, 2019. The IRS instructions for filing form 720 include information on reporting and paying the PCORI fees.

RESOURCE LINKS:

PCORI IRS Q&A: https://www.irs.gov/affordable-care-act/patient-centered-outcomes-research-trust-fund-fee-questions-and-answers

IRS Form 720: https://www.irs.gov/pub/irs-pdf/f720.pdf

Filing Dates: https://www.irs.gov/affordable-care-act/patient-centered-outreach-research-institute-filing-due-dates-and-applicable-rates