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The IRS has issued Notice 2024-83 to increase the Patient-Centered Outcomes Research Institute (PCORI) fee to $3.47 per average covered life for plan years ending between October 1, 2024, and October 1, 2025. For plan years ending between October 1, 2023, and October 1, 2024, the fee is $3.22 per average covered life.
The PCORI fee, established by the Affordable Care Act, applies to plan years ending on or after October 1, 2012, and funds comparative effectiveness research. Initially set to expire in 2019, it has been extended to apply through plan years ending before October 1, 2029.
PCORI fees must be reported and paid annually on IRS Form 720 by July 31 of the year after the plan year ends. For 2024 plan years, the fee is due by July 31, 2025. Self-insured employers should have completed their 2023 payments by July 31, 2024.
PCORI fees are based on the average number of covered lives, including employees, spouses, and dependents, except for Health Reimbursement Arrangements or Flexible Spending Accounts. Final rules offer various methods for calculating this average. Download the bulletin for more details.
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