The sun is out and summer is almost here, which means employers should be getting ready to file their IRS Form 720 to pay the PCORI fee for their self insured health plans. As employers will recall, the Patient-Centered Outcome Research Fee (PCORI) was first authorized under the Affordable Care Act (ACA) in 2010. This fee helps fund research that helps patients and healthcare providers make more informed decisions about the care they provide and receive.

The PCORI fee applies to self insured health plans, including HRAs. Insurance carriers of fully insured health plans pay this fee for employers, and include it in their premium rates. The fee is applied to plan years ending on or after October 1, 2012, and before October 1, 2029, and is calculated based on the number of ‘covered lives’ under the plan. 

For plan years that ended on or after Oct. 1, 2023, and before Oct. 1, 2024, (including calendar year plans), the fee is $3.22 per person covered by the plan.

For plan years that ended on or after Oct. 1, 2022, and before Oct. 1, 2023, the fee is $3.00 per person. (Note that for HRAs, include only enrolled employees, not their dependents).

At the time of this writing, the IRS has released their June 2024 draft 720, but we are still waiting on the finalized form. Once published, the form will be available here. The filing deadline is July 31, 2024.