Jun 02 ,2025
PCORI fee due date 2025 for 2024 plan year
PCORI Fee Due Date 2025 for 2024 Plan Year: What Employers Need to Know
1. What is the PCORI Fee?
The Patient-Centered Outcomes Research Institute (PCORI) fee is a federal levy levied on issuers of specific health insurance plans and self-composed health plans. It has been done to fund research that could help patients and healthcare providers make better decisions. The PCORI fee was initially set to expire; however, the Further Consolidated Appropriations Act of 2020 extended it through 2029.
2. PCORI Fee Due Date for 2025
For the plan years ending in 2024, the PCORI fee is expected to be paid by July 31, 2025. This is true for the employers who have self-insured health plans that include HRAs (Health Reimbursement Arrangements) and insurance companies that sell fully insured policies. Failure to file by the absolute date may lead to IRS penalties and interest charges.
3. Which Plans Are Subject to the PCORI Fee?
PCORI fee is paid on most group health plans, e.g., the self-funded medical plans and some HRAs. By the end of the year 2024, the employers with a calendar year plan will be required to pay the fee by July 31, 2025. An example of enrollees only having the minimum benefits, such as a standalone dental or vision plan, would be the exception.
4. How to Calculate and File the PCORI Fee
IRS declares the PCORI fee rate yearly. In the closing period of the plan year 2024, an employer has to refer to the rate, which will be disclosed by the IRS (scheduled to be published at the beginning of 2025.). Without any issues, the employers can opt for one of the IRS-approved techniques in order to calculate the average number of covered lives; the methods are the actual count, snapshot, and Form 5500 method. Tax return, IRS Form 720, Quarterly Federal Excise Tax Return must be used for both paying the fee and filing the report.
5. Avoid Penalties by Getting Your Work Done in Advance
Why not mark your calendar today: July 31, 2025, is the final date for payment of PCORI fee for the plan year 2024. To comply with the requirements, you should inform your payroll, HR, or benefits team and ensure they have the correct data on the lives covered in advance. For a trouble-free compliance experience, think about the possibility of collaborating with a tax professional or a benefits administrator who is an expert in the Form 720 filing procedures.