PCORI fees are federal taxes mandated by the Affordable Care Act and levied on both insured and self-funded health plans, retiree health plans, and HRAs.
The purpose of these mandatory annual fees is to fund healthcare research carried out by the Patient-Centered Outcomes Research Institute.
Carriers pay the PCORI fees for insured medical plans, and employers pay the fees for self-funded plans — using IRS Form 720. The deadline for payment is July 31, 2026 and the latest Form 720 can be downloaded here.
The PCORI fee is treated as an excise tax, meaning late submission of Form 720 triggers a 5% penalty on the unpaid amount for each month or part of a month the return remains unfiled, capped at 25%.
Download our Employer’s Guide to PCORI here.
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