Is the PCORI Fee Required Every Year? Explained
Article Summary
The PCORI fee is an annually mandated tax for applicable self-insured plans, HRAs, and some healthcare coverage arrangements, which requires reporting using IRS Form 720 in the second quarter.
The tax was instituted by the Affordable Care Act (2010) and is meant to raise funds for the Patient-Centered Outcomes Research Institute and is guided by IRC sections 4375-4377.
Currently, it is applicable for plan years ending before October 1, 2029, within the Patient-Centered Outcomes Research Trust Fund system.
The fee should be calculated each plan year and separately for each covered life, with no possibility of multi-year or one-time tax filing.
PCORI filings occur on an annual basis using Form 720, in particular for the filing for the second quarter of each year, with the set deadline being July 31 without any possibility of extension.
While applicability will cease for plan years ending September 30, 2029, final filings will be made in 2030 owing to the IRS reporting process.
Filing on an annual basis is necessary to remain compliant with the IRS, avoid fines and interest, and make sure proper reporting of covered lives is made under excise taxes.
In summary, PCORI fees are an annually required ACA-imposed excise tax through 2029 with final compliance occurring in 2030.
Short Answer: Yes
The PCORI fee is required every year for applicable self-insured and fully insured health plans and HRAs and is reported using IRS Form 720. Even though Form 720 is a quarterly excise tax return, the PCORI reporting is done only once annually in the second quarter.
To understand how this annual requirement works, we need to look at its origin, filing rules, and how long it continues under federal law.
Is PCORI Fee Required Every Year?
Yes. The PCORI fee is an annual excise tax obligation.
It must be:
Computed annually per plan year on a per covered life basis. (Use our PCORI Fee Calculator to calculate your PCORI Fee in few seconds)
Filed annually via Form 720 during Q2
There is no one-time or multi-year filing option, since liability is determined separately for each plan year.
When is PCORI Fee Filed Every Year?
PCORI is always reported in the second quarter Form 720 filing, with a fixed annual deadline.
Key points:
Filed only in Q2 of Form 720
Due date: July 31 each year
No extension allowed
Next business day applies if July 31 is a weekend/holiday
Till When is PCORI Fee Applicable?
The PCORI fee continues based on plan year end dates, not filing years.
Applies to plan years ending on or before September 30, 2029
Final eligible plan year is 2029
Since filing happens next year, final returns will be filed in 2030
So while applicability ends with 2029 plan years, compliance activity continues into 2030 due to IRS filing timelines.
Why You Should File PCORI Fee Every Year
PCORI compliance is mandatory under federal excise tax law. Filing every year ensures:
IRS Form 720 Compliance
No PCORI Penalties or Interest Accrual
Proper Reporting of Covered Lives
Audit and Regulatory Compliance
Not submitting or paying on time can lead to penalties and interests by the IRS due to excise taxes.
Read our blog on why you need to file your PCORI fee online with QuickFile720 in 2026.
The PCORI fee was created under the Patient Protection and Affordable Care Act (ACA), 2010 and is governed under IRC Sections 4375, 4376, and 4377. It funds the Patient-Centered Outcomes Research Institute (PCORI), which supports research comparing medical treatments to improve healthcare decisions.
It was first put in place on a temporary basis to finance research within ACA. Nevertheless, the provision has been renewed on several occasions via legislation at the federal level, such as the Further Consolidated Appropriations Act, 2020.
Current Applicability
Applies to plan years ending before October 1, 2029
Covers self-insured health plans and applicable HRAs
Funded through the Patient-Centered Outcomes Research Trust Fund
Conclusion
The PCORI fee is an annually mandatory fee imposed on ACA and reported using Form 720 during the second quarter. It was created as a means to finance medical research and its applicability is currently extended until the end of 2029, with the final returns due by 2030.
Knowing the schedule, requirements, and structure of reporting helps stay compliant.
File your PCORI Fee 2026 Online with QuickFile720 now!