New Patient-Centered Outcomes Research Institute (PCORI) Fee for Self-Insured Health Plans

February 17, 2021

On November 24, 2020, the IRS released Notice 2020-84 which updated the amount of the Patient-Centered Outcomes Research Institute (PCORI) fee that self-insured health plans must pay for plan years ending on or after October 1, 2020, and before October 1, 2021. The fee, originally set to expire on October 1, 2019, was extended by the Further Consolidated Appropriations Act of 2020.

The PCORI fee is calculated by using the average number of lives covered under the policy or plan and the applicable dollar amount for that policy year or plan year. The applicable dollar amount was $2.00 when the fee was enacted as part of the Affordable Care Act, but that amount has increased annually based on the projected per capita amount of national health expenditures.

IRS Notice 2020-84 provides that the applicable dollar amount for the plan years ending on or after October 1, 2020, and before October 1, 2021, is $2.66. This is an increase from the fee of $2.54 for plan years ending on or after October 1, 2019, and before October 1, 2020.  

PCORI fees are reported and paid annually along with the submission of IRS Form 720, the Quarterly Federal Excise Tax Return. PCORI fees are due by July 31 of the year following the end of the plan year.