What is PCORI?
On December 6, 2012, the Internal Revenue Service (IRS) published final regulations that implement and provide guidance on the fees imposed by the Patient Protection and Affordable Care Act (ACA) to fund the Patient-Centered Outcomes Research Institute Trust Fund (PCORI). The regulations became effective December 6, 2012 and apply to policies and plan years ending on or after October 1, 2012. Under the Affordable Care Act (ACA), the PCORI fees were scheduled to apply to policy or plan years ending on or after October 1, 2012, and before October 1, 2019. On December 20, 2019, the Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed into law that extends PCORI fees 10 years, through plan years ending September 30, 2029 (for calendar year plans, the final fee payment will be due by July 31, 2029). This means that specified health insurance policies and applicable self-insured health plans must continue to pay these fees through 2029.
Reporting Requirements
The PCORI fee must be reported annually on IRS Form 720. The Form 720 is due on July 31 of the year following the last day of the plan year. For organizations that file Form 720 solely to report the PCORI fee, only one Form 720 needs to be filed annually (i.e., even though the Form 720 is a quarterly tax form, only a single Form 720 should be filed for the second quarter of each year).
Forms and Resources
IRS Form 720
All applicable fields have been highlighted for your convenience. Please refer to the PCORI letter you received for instructions on how to complete the form.