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The IRS issued Notice 2023-70, which increases the fee for plan years ending on or after October 1, 2023, and before October 1, 2024, to $3.22 multiplied by the average number of lives on the plan.
PCORI Fee Applicability
The Affordable Care Act imposes a fee on health insurance issuers and self-insured plan sponsors to fund comparative effectiveness research. These fees are called PCORI fees. The PCORI fee was originally scheduled to expire in 2019, but it was extended for another 10 years. As a result, it will apply through the plan or policy year ending before October 1, 2029.
Payment Deadline
PCORI fees must be paid annually using IRS Form 720 by July 31 of the year following the last day of the plan year. For plans ending in 2023, the next payment is due July 31, 2024. Employers with self-insured health plans should have reported and paid PCORI fees for 2022 by July 31, 2023.
Calculate PCORI
PCORI fees are calculated based on the average number of covered lives under the plan or policy. Final rules outline a number of alternatives for issuers and plan sponsors to determine the average number of covered lives. Download the bulletin for more details.
IRS Resources
PCORI Fee: Questions and Answers
PCORI Fee Due Dates and Applicable Rates
Chart: Application of the PCORI Fee to Common Types of Health Coverage or Arrangements
National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.
