PCORI (Patient-Centered Outcomes Research Institute) fees are annual fees that employers who sponsor certain self-insured health plans or fully-insured health plans are required to pay. The fees are used to fund the Patient-Centered Outcomes Research Trust Fund, which supports research to improve the quality and effectiveness of medical treatments and patient outcomes.
Employers who sponsor self-insured health plans or fully-insured health plans are required to pay PCORI fees for each plan year. The amount of the fee is calculated based on the number of plan participants, including employees and dependents, and the plan year end date.
The PCORI fee is reported and paid annually using IRS Form 720, which is due on July 31 of the year following the end of the plan year. For example, the PCORI fee for the 2022 plan year is due on July 31, 2023.
Employers who fail to pay the PCORI fees on time may be subject to penalties and interest. It is important for employers who sponsor health plans to understand their obligations under the law and take steps to ensure compliance with all reporting and payment requirements. Additionally, consulting with legal and financial professionals can help ensure that you are meeting your obligations and avoiding any potential penalties or legal liabilities. Have questions on calculating your PCORI fee? BenefitsDNA can help, get in touch with our team today to start!
