Quick Intro - PCORI Fee at a Glance
What is the PCORI Fee?
- A PCORI fee is an amount that the federal government charges to provide funding for research conducted on patient care results. This applies to some health plans and ensures improvement in patient care.
Applies Through
- The fee applies to health plans with policy or plan years ending after September 30, 2012 and before October 1, 2029. This means PCORI fees will continue to apply until 2029.
Due Date
- The PCORI payment must be reported and paid annually using Form 720, specifically the second quarter return. The filing is due no later than July 31 of the calendar year following your plan year end.
Tax Rates
- For plan years ending between January 1, 2025 and September 30, 2025, the rate is $3.47 per covered life. For plan years ending on or after October 1, 2025 and before October 1, 2026, the rate increases to $3.84 per covered life.
How to File
- The fee is filed using IRS Form 720 even though it is a quarterly form. You only need to file once per year for the PCORI fee.
Methods to File the PCORI Fee
1. Manual PCORI Filing - With the manual PCORI filing method, download the latest Form 720 from the IRS website and enter IRS number 133 for the PCORI section. Figure out your fee using any method approved by the IRS for the type of policy/plan you have, like Actual Count, Snapshot, or Form 5500 Method. Once you've double-checked everything, send the payment along with the completed form to the IRS mailing address. It is a tedious process.
2. PCORI Online Filing - Online filing is the most convenient method to file your PCORI fees. Just choose an IRS-Authorized 720 portal, sign up for a free account, and fill out all information. The website will do the calculation for your PCORI fee on its own and file the required Form 720. All you have to pay for the process is a nominal processing fee.
PCORI Manual Filing versus PCORI Online Filing
| Aspect | PCORI Manual Filing (Paper) | PCORI Online Filing |
|---|---|---|
| Fast Processing | Takes several weeks because of mailing and IRS processing | Filing and confirmation are completed within minutes |
| Cost Effectiveness | Cost includes printing, mailing etc with excess time. | Small processing fee and time saved adds value |
| Error Risk | High because calculations and entries are manual | Low because the portal calculates and validates automatically |
| Record Storage | Physical copies needed and harder to organize | Digital records are stored and downloadable |
| PCORI Rate | Irrelevant PCORI rate can be applied while manual calculation | Correct PCORI Rate is automatically applied based on the plan selection. |
| Form Maintenance | Must track updates and revisions manually | Portal updates forms automatically |
| User Convenience | Must prepare, sign, and mail the form | File from any device or location with ease |
This comparison clearly shows why online filing is the preferred choice for PCORI submissions.
How to Choose the Right Online Portal for PCORI Filings
In the current scenario, QuickFile720 would be the best choice as it offers a lot of reliability and convenience with respect to form submission.
Authorized Portal
- QuickFile720 is the platform authorized by the IRS for PCORI fee submissions. Your filing will be done properly due to its official authorization.
Faster and More Precise PCORI Filing
- QuickFile720 is a special PCORI filing platform which allows for faster and more accurate calculation of PCORI rate. It completes the form automatically and decreases the possibility of mistakes.
Cheapest Portal
- QuickFile720 offers the cheapest PCORI online option authorized by the IRS at a very reasonable processing fee.
Tax Rates
- For plan years ending between January 1, 2025 and September 30, 2025, the rate is $3.47 per covered life. For plan years ending on or after October 1, 2025 and before October 1, 2026, the rate increases to $3.84 per covered life.
Bulk Filings
- Bulk filings allow organizations with multiple health plans or policies to submit all PCORI fee filings at once. This saves time, reduces manual effort, and ensures all filings are processed efficiently with the IRS.
Secure and Certified
- QuickFile720 is a SOC 2 AICPA certified system, so it ensures the safety of your data during the entire process.
Web Portal
- It is a fully web-based portal; therefore, you don't have to install any additional programs on your computer to submit your PCORI.
Frequently Asked Questions
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