When Did the PCORI Fee Start? A Complete Guide
When did the PCORI Fee start?
The PCORI Fee started for plan years and policy years ending after September 30, 2012.
This means:
1)The first applicable PCORI fee period began in 2012.
2)The first payments were generally made in 2013, because the fee is reported and paid by July 31 of the calendar year following the end of the applicable plan year or policy year
Example:
First PCORI Fee Rate
For the first applicable period:
Plan/policy years ending after September 30, 2012 and before October 1, 2013
Fee rate: $1.00 per covered life
Example:
Why was the PCORI Fee created?
The fee was created under the Affordable Care Act (ACA) to fund the Patient-Centered Outcomes Research Trust Fund. This fund supports the work of the Patient-Centered Outcomes Research Institute (PCORI), which conducts and funds comparative clinical effectiveness research to help patients, healthcare providers, and policymakers make better healthcare decisions.
Original PCORI Fee Timeline
Current Status of PCORI Fee
The PCORI fee is still active. For plan years ending:
After September 30, 2025 and before October 1, 2026
Rate: $3.84 per covered life
The fee continues through plan/policy years ending before October 1, 2029.
PCORI and IRS
The PCORI Fee is primarily associated with the IRS because it is reported and paid through Form 720, Quarterly Federal Excise Tax Return, which is administered by the IRS. While the fee supports the funding of the Patient-Centered Outcomes Research Institute (PCORI), the rules, filing requirements, payment procedures, and compliance guidelines are governed by the IRS.
Conclusion:
PCORI Fee has had a significant role in the funding of research in patient-centered healthcare after its enactment through the Affordable Care Act. Being aware of the inception date of the fee and its applicability will assist the plan sponsors and insurance providers to comply with their responsibilities in filing this fee. Using QuickFile720 will make your PCORI Fee calculation and filing process easier than ever before.
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