With July 31 around the corner, it’s time to start thinking about the Patient‐Centered Outcomes Research Institute (PCORI) Fee. To support clinical effectiveness research, the Affordable Care Act (ACA) imposes an annual fee per enrollee on most insured and self‐insured group health plans through 2019. The PCORI fee is due by July 31 of the calendar year following the close of the plan year. For plan years ending in 2014, the fee is due by July 31, 2015.
PCORI fees are required to be reported annually on the second‐quarter Form 720, Quarterly Federal Excise Tax Return. Filings must be submitted by July 31.
The PCORI fee is assessed based on the number of lives covered by the plan. For plan years ending before Oct. 1, 2014, the fee is $2 per covered life, and $2.08 per covered life thereafter.
Per the IRS, the fee is tax‐deductible as a business expense.