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The Patient-Centered Outcomes Research Institute (PCORI) fee is mandatory under the Affordable Care Act. It is directed to specific self-insured health plans and policy issuers of defined policy types. This annual fee supports research aimed at evaluating and comparing healthcare outcomes. Nonetheless, for business administrators and plan administrators who are not familiar with tax requirements, navigating the calculation and reporting of this fee can be complex.

Not all health plans have to pay the PCORI fee, but many employers with self-insured health coverage do. The implementation of the fee has created the obligation for these plans to file. Plan administrators must identify eligible plans and calculate the average number of covered lives for filing. Should mistakes or deadlines be missed, the IRS could charge penalties or interest.

Filing the PCORI fee requires Form 720, the Quarterly Federal Excise Tax Return, from the IRS. This form is generally filed on a quarterly basis, and the individual reports the PCORI fee only once a year, by July 31, for the previous year's plan. The fee is calculated by multiplying the average number of covered lives by the IRS-set rate. The IRS revises the rate of the PCORI fee yearly; therefore, regular checks are a must.

Contracting a competent service provider ensures accurate, timely filing and provides peace of mind. These experts comply with IRS regulations, calculate the correct fee using plan data, and submit Form 720 electronically or by mail. A reliable service that clarifies the process and reduces employee workload is essential for any business to remain compliant without straining internal resources.

A dedicated service handles all filing steps professionally, allowing company staff to focus on core business activities. Whether managing a small business health plan or a large employer-sponsored plan, timely and accurate PCORI fee filing is crucial to maintaining legal compliance and supporting efficient business operations.