PCORI Fee for 2026. File It Right. On Time.

The Patient-Centered Outcomes Research Institute (PCORI) fee is a federal fee required under the Affordable Care Act. It funds comparative clinical effectiveness research and is reported annually on IRS Form 720.

The fee applies to each covered life under an applicable health plan and is paid once per year, even though Form 720 is generally a quarterly return.

The PCORI fee applies to:

Entities with plans that meet specific IRS exemption rules are not required to pay the PCORI fee.

The PCORI fee for 2026 is based on the health plan year end date. The applicable fee rate per covered life is:

Employers must verify the exact end date of their health plan year to apply the correct rate when filing in 2026. For instance, plans with a year-end date in December 2025 will fall under the $3.84 rate.

If you are responsible for the health plan, you are responsible for the PCORI fee. The rule is straightforward. payment depends on who sponsors the plan and how it is funded.

1. Eligible Employers - You are required to pay the PCORI fee if you sponsor a self-insured health plan. This includes employers that pay medical claims directly, even if a third party administers the plan.

2. Applicable Health Plans - The fee applies to plans that provide medical coverage and count covered lives, including:

For fully insured plans, the insurer files and pays the fee. Employers should still confirm this to avoid missed filings or duplicate payments.

3. Exempt Entities - Certain plans are excluded under IRS rules. These commonly include:

If your plan structure is unclear, confirming eligibility before filing prevents errors and penalties.

The PCORI fee is filed using IRS Form 720. For many employers, this is the only reason they file this form during the year.

Manual Filing
(Do It Yourself)

• Step 1 - Always download the latest version of IRS Form 720 and the official instructions from the IRS website.
• Step 2 - Complete the general information section at the top of the form. Enter employer name, address, EIN, and select the quarter ending June 30
• Step 3 - Scroll directly to Part II of the form. Locate IRS No. 133 - Patient-Centered Outcomes Research (PCORI) fee.
• Step 4 - Determine the number of covered lives using an IRS-accepted counting method. Calculate the PCORI fee by multiplying covered lives by the applicable rate.
• Step 5 - Enter the final PCORI fee amount in Part II under IRS No. 133. Leave all other sections blank unless you are reporting additional excise taxes
• Step 6 - Go to Part III, calculate the Total Tax, then sign and date the form.
• Step 7 - Prepare payment by check or money order payable to the United States Treasury.
• Step 8 - Mail the completed Form 720 and payment to the official IRS mailing address listed in the Form 720 instructions. Retain copies for records.

Online Filing with QuickFile720
PCORI Online Portal

• Step 1 - Sign up for a QucikFile720 account or log in if you already have one. Returning users can select an existing business profile.
• Step 2 - Enter business name, EIN, business type, and contact details. Select Form 720, choose the correct tax year and quarter, and continue.
• Step 3 - Under Part II, select IRS No. 133 (PCORI Fee). Choose the policy type and enter the average number of covered lives. The system calculates the PCORI fee automatically.
• Step 4 - Choose a payment method (Direct Debit or EFTPS), make a small processing fee for using our platform, and submit. You will be getting acknowledgement as soon as the IRS approves.

Most PCORI penalties come from small, avoidable mistakes. Not from complex rules. These are the issues the IRS sees most often.

Missing the July 31 deadline

PCORI is filed only once a year. Many employers miss it because they associate Form 720 with quarterly excise taxes and do not expect a July filing.

Using the wrong rate

The PCORI amount changes each year. Applying a prior-year rate or using the calendar year instead of the plan year leads to underpayment.

Incorrect covered life counts

Errors often occur when employers mix counting methods, overlook dependents, or use partial-year numbers that do not meet IRS rules.

Filing under the wrong party

For fully insured plans, the carrier files. For self-insured plans, the employer files. Confusion here leads to duplicate filings or no filing at all.

Not filing Form 720 at all

Some employers assume no filing is required if no quarterly excise taxes apply. PCORI still requires Form 720, even when it is the only item reported.

Catching these issues early avoids penalties, interest, and IRS follow-ups.

You don't need to interpret IRS language or double-check forms late at night. This filing follows a fixed rule set. When it's done right once, it's done for the year.