The Affordable Care Act (ACA) imposes a fee on fully-insured health plans and self-funded company plan sponsors in order to fund comparative effectiveness research. These fees are widely known as Patient-Centered Outcomes Research Institute (PCORI) fees.  The Internal Revenue Service (IRS) increased the fee to $2.45 for 2018.  Here are the highlights.

  • The IRS published Notice 2018-85, which increased the PCORI fee amount for plan years ending on or after Oct. 1, 2018, and before Oct. 1, 2019 (that is, 2018 for calendar year plans), to $2.45 per covered life.
  • PCORI fees are reported and paid annually using IRS Form 720 (Quarterly Federal Excise Tax Return). These fees are due each year by July 31 of the year following the last day of the plan year. This means that, for plan years ending in 2018, the PCORI fees are due by July 31, 2019.
  • The PCORI fees do not apply for plan years ending on or after Oct. 1, 2019. Therefore, for calendar year plans, the 2018 plan year is the last plan year that these fees will be effective.

For questions about the PCORI fee or the ACA, contact VCG’s Vantage.