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The PCORI fees' valid through date is July 31, 2025. It is important to remember that the PCORI charge will expire on July 31, 2025, if you are an employer or plan sponsor and currently participate in self-insured health plans. The Health Care Reform Act mandates the payment of the Patient-Centered Outcomes Research Institute (PCORI) fee in order to fund research that will assist physicians and patients in making better healthcare decisions. The fee for fully insured plans is covered by the insurance companies, but those with self-funded health plans must submit and pay the fee using IRS Form 720. 

Employer organizations that are the plan sponsors of self-insured medical plans, including HRAs, are typically referred to by the PCORI fee. Additionally, small and medium-sized firms that use level-funded plans are among the non-excepted advantages of the HRAs that also pay the PCORI cost. The applicable PCORI fee due date depends on the plan year’s end date, which varies based on how the employer defines it. However, in this instance, if the termination date falls between January 1, 2024, and December 31, 2024, the cost needs to be reported and paid by July 31, 2025. Additionally, since late filing or payment might result in IRS penalties, it is wise to learn from the repercussions. Therefore, the earlier you are well-prepared, the better. 

Receiving services, you must first determine the average number of covered lives in a year over the plan period using one of the IRS-approved methods—the Form 5500 approach, the snapshot technique, or the actual count method. For plan years ending in 2024, it is anticipated that the PCORI fee will be modified annually for inflation; consequently, it is necessary to verify the most recent rate on the IRS website. By July 31, 2025, it is crucial to complete IRS Form 720 (Quarterly Federal Excise Tax Return) and submit a payment. If the plan is not exempt from the PCORI fee under Internal Revenue Code Section 4375, it is the sole method to pay this kind of tax. 

Due to increasing tax and compliance demands, it's essential to proactively manage PCORI fee obligations. Errors that are extremely expensive to fix will be eliminated if the PCORI fee is discussed far in advance, say, well before the July 31, 2025 deadline. To ensure proper and timely PCORI fee submission, reminders must be made, plan data must be collected on time, and a tax advisor or benefits consultant should be consulted. Additionally, submitting on time guarantees that you are not only fulfilling the requirements but also avoiding the stressful scenario of last-minute errors and penalties.