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.
The links to the ACA Overview below provides further information on reporting and paying the PCORI fees. Please contact JRG Advisors for more information.
Reporting & Paying the PCORI Fees (pdf)
Coverage Subject to PCORI Fees (pdf)
FAQs on PCORI Fees (pdf)