Form 720 is the IRS form used to report and pay the Patient-Centered Outcomes Research Institute (PCORI) fee, an annual excise tax that funds research to improve healthcare outcomes. For 2025, the PCORI fee is primarily due by July 31st for plan years ending in the 2024 calendar year. Self-insured health plan sponsors, including those with Health Reimbursement Arrangements (HRAs), are generally responsible for calculating and paying this fee based on the average number of covered lives under their plans, utilizing methods such as actual count, snapshot, or Form 5500. While Form 720 is a quarterly excise tax return, the PCORI fee is reported specifically for the second quarter (ending June 30th) each year, regardless of the plan's fiscal year end. The fee per covered life varies depending on the plan year end date in 2024, being $3.22 for plans ending between January 1 and September 30, 2024, and $3.47 for plans ending between October 1 and December 31, 2024.

The Patient-Centered Outcomes Research Institute (PCORI) fee, a mandate under the Affordable Care Act, is due annually by July 31st for applicable health plans. For plan years that ended in 2024, the deadline for reporting and paying these fees via IRS Form 720 is July 31, 2025. This fee applies to issuers of specified health insurance policies and sponsors of self-insured health plans, including HRAs. The fee amount is based on the average number of covered lives during the plan year, with rates varying depending on the plan year end date in 2024 (either $3.22 or $3.47 per covered life). Employers sponsoring self-insured plans are responsible for calculating the average number of covered lives using one of several permissible methods and remitting the payment to the IRS.

The PCORI fee for 2025 remains a key compliance requirement under the Affordable Care Act for issuers of specified health insurance policies and sponsors of applicable self-insured health plans. This annual fee funds the Patient-Centered Outcomes Research Institute and must be reported on IRS Form 720. Employers and plan sponsors should be aware of the applicable rate based on their plan year and ensure timely filing before the July 31, 2025, deadline to avoid penalties. Understanding the latest updates, proper calculations, and documentation is crucial for staying compliant.

The ACA PCORI fee, mandated under the Affordable Care Act, is a requirement for issuers of specified health insurance policies and self-insured health plans to help fund the Patient-Centered Outcomes Research Institute. For 2025, organizations must calculate the fee based on the average number of covered lives and file Form 720 by the IRS deadline. Staying updated on the latest fee rates and filing requirements is essential to ensure compliance and avoid penalties. Whether you're a plan sponsor or benefits administrator, understanding these requirements is key to smooth annual reporting.

The Patient-Centered Outcomes Research Institute (PCORI) fee is an annual charge imposed on issuers of specified health insurance policies and sponsors of self-insured health plans, established under the Affordable Care Act (ACA). This fee helps fund the PCORI, an independent, non-profit organization dedicated to conducting research that evaluates the effectiveness of medical treatments and healthcare services to improve patient outcomes and inform healthcare decisions. While insurance carriers are responsible for paying the PCORI fee for fully insured plans, employers sponsoring self-insured health plans (including HRAs) are responsible for calculating and remitting the fee to the IRS annually on Form 720 by July 31st, based on the average number of lives covered during the preceding plan year. The fee amount is adjusted annually for inflation.

PCORI fee compliance services assist employers and health plan sponsors in meeting their annual obligations for the Patient-Centered Outcomes Research Institute (PCORI) fee, a crucial component of the Affordable Care Act (ACA). These services typically involve accurately calculating the fee based on the average number of covered lives, preparing and submitting IRS Form 720 by the July 31st deadline, and advising on specific scenarios such as self-insured plans, HRAs, and FSAs. By leveraging expert guidance, organizations can ensure timely and accurate filings, mitigate the risk of IRS penalties, and confidently fulfill their regulatory responsibilities related to funding patient-centered health outcomes research.

The Patient-Centered Outcomes Research Institute (PCORI) fee is a significant consideration for Human Resources departments managing health plans. This fee, established under the Affordable Care Act (ACA), applies to plan sponsors of certain self-insured and fully insured health plans. HR professionals are responsible for ensuring accurate calculation, timely reporting on IRS Form 720, and payment of this fee by the annual deadline. Understanding the intricacies of who is subject to the fee, how to determine the average number of covered lives, and any applicable exemptions is crucial for maintaining compliance and avoiding penalties. Seeking assistance or utilizing resources that clarify these guidelines can greatly simplify the process for HR teams.

The Patient-Centered Outcomes Research Institute (PCORI) fee is an annual fee imposed on certain health insurance policies and self-insured health plans to fund comparative effectiveness research. For small businesses, understanding their obligation to file and pay this fee is crucial for compliance with the Affordable Care Act (ACA). The fee amount is calculated based on the average number of lives covered under the plan and is reported and paid using IRS Form 720, the Quarterly Federal Excise Tax Return. While primarily impacting self-insured plans, certain HRAs (Health Reimbursement Arrangements) offered by small businesses may also be subject to the fee. Businesses must accurately determine their covered lives and adhere to the filing and payment deadlines, typically by July 31st of the year following the last day of the policy or plan year.

The Patient-Centered Outcomes Research Institute (PCORI) fee is an annual excise tax imposed under the Affordable Care Act (ACA) on health insurers and sponsors of self-insured health plans, including many Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs), to fund comparative effectiveness research. While health insurance carriers typically handle this fee for fully insured plans, employers sponsoring self-insured health plans are directly responsible for calculating, reporting, and paying the PCORI fee to the IRS using Form 720 by July 31st. Importantly, third-party administrators (TPAs) generally do not remit this fee on behalf of self-insured employers; instead, their role is often limited to providing the necessary data on covered lives, aiding employers in fulfilling their compliance obligations.

The Patient-Centered Outcomes Research Institute (PCORI) fee is an annual assessment levied on self-insured health plans to fund research aimed at improving healthcare quality and effectiveness. For self-insured employers, this means a direct obligation to calculate the fee based on the average number of covered lives within their plan, including dependents and certain HRAs, and report it annually to the IRS using Form 720. This fee, part of the Affordable Care Act, is due by July 31st of the year following the plan year end and is subject to annual adjustments for inflation, making ongoing compliance and accurate record-keeping essential for plan sponsors.