IRS Increases PCORI Fee

The IRS has raised the fee that insurers or sponsors of self-insured health plans pay annually to fund the federal Patient-Centered Outcomes Research Institute (PCORI) Trust Fund. For 2022, the fee is due Aug. 1, because July 31 falls on a Sunday. 

Employers with self-insured medical plans pay the annual PCORI fee directly to the IRS. For fully insured plans, the fee is paid by the insurance provider, although the cost may be factored into premium increases. It also applies to some HRAs.

The fee applies to health plans for the preceding calendar year. The new fees are: 

• For plan years that ended on or after Oct. 1, 2021, and before Oct. 1, 2022 (including calendar year plans), the fee is $2.79 per person covered by the plan, up from $2.66.
• For plan years that ended on or after Oct. 1, 2020, and before Oct. 1, 2021, the fee is $2.66 per person, up from $2.54.

Fees are reported and paid annually with the submission of IRS Form 720 (Quarterly Federal Excise Tax Return), and are due by July 31 of the year following the end of the plan year, unless that date falls on a weekend or a federal holiday. 

In case you were wondering, according to the IRS: “The Patient-Centered Outcomes Research Trust Fund fee is a fee on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans that helps to fund the PCORI. The institute helps patients, clinicians, purchasers and policymakers make better-informed health care choices by advancing clinical effectiveness research.” 

For a deeper dive into PCORI fees, click here.