PCORI Fee Update for Plan Years Ending October 1, 2022, Through September 30, 2023
On November 14, 2022, the IRS has Notice 2022-59, announcing the adjusted applicable dollar amount for determining the Patient-Centered Outcomes Research Trust Fund (PCORTF) fee for policy years and plan years ending on or after October 1, 2022, and before October 1, 2023.
The Affordable Care Act imposes a fee on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans, to help fund the Patient-Centered Outcomes Research Institute (PCORI). This fee, also known as the PCORI fee, is calculated using the average number of lives covered under the policy or plan and the applicable dollar amount for that policy year or plan year. In IRS Notice 2022-4, the IRS provided the adjusted PCORI fees for plan years ending in October 2021 through September 2022 as $2.79. IRS Notice 2022-59 adjusts the applicable dollar amount for policy years and plan years that end on or after October 1, 2022, and before October 1, 2023, to $3.00.
The PCORI fee is filed using Form 720. Although Form 720 is a quarterly return, PCORI Form 720 is filed annually only, by July 31. Plan sponsors should apply the applicable PCORI fees and file Form 720 corresponding to policy or plan years ending from January 1, 2022, to December 31, 2022, by July 31, 2023.
For more information regarding PCORI fees in general, please refer to IRS Code Sections 4375 and 4376.