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The Patient-Centered Outcomes Research Institute (PCORI) fee is an integral part of health insurance compliance under the Affordable Care Act (ACA). Employers or the plan sponsors that self-insure health coverage must be aware of the due date of the PCORI fee to avoid incurring penalties. This article covers the deadline, whom it affects, and the essential steps to follow in filing.

PCORI fees are charged to issuers of select health insurance policies and those responsible for self-insured health plans as a means to fund the Patient-Centered Outcomes Research Institute, which oversees research into clinical efficacy and healthcare outcomes.

While originally set to sunset in 2019, the PCORI fee was extended to 2029 as part of the Further Consolidated Appropriations Act of 2020.

The due date for the PCORI fee usually falls on July 31 of the calendar year following the conclusion of the plan year. This means;

For calendar-year plans closing on December 31, 2024, the PCORI fee is due by July 31, 2025.

For non-calendar year plans, the deadline is also July 31, but it depends on the year related to the end date of the plan.

Employers must pay the PCORI fee using IRS Form 720 (Quarterly Federal Excise Tax Return). Though the form is filed quarterly, payments specifically for the PCORI will be made once a year, with the second-quarter filing, due by July 31.

Steps for filing include:

Download and fill IRS Form 720

Fee calculation based on the average number of lives covered

Form and payment submission to the IRS on the due date

Tip: The fee will vary year to year; thus, every time, you should check the IRS PCORI fee table for the correct effective fee depending on your plan year.

The PCORI payment liability is borne by:

Health insurance issuers (for fully insured group policies).

Plan sponsors (for self-insured health plans, including HRAs and FSAs).

Employers with self-funded health plans must ensure they correctly calculate and file the fee each year.

Failing to meet the PCORI filing deadline can lead to fines, interest charges, and examination by the IRS. Complying on time assures that the organization is in good standing, avoiding unnecessary stress.

The PCORI deadline is a critical compliance milestone for employers offering health coverage. It is one of the key compliance dates for businesses offering health coverage. Put July 31 on your calendar, Ensure Form 720 is prepared and submitted by the deadline, and speak with a tax advisor if necessary.

Keeping up to date on the PCORI filing date, employer healthcare obligations, and ACA tax obligations will afford your business valuable protection against unwarranted penalties.