November 02, 2023
In IRS Notice 2023-70, the Internal Revenue Service (IRS) announced that for plan years ending on or after October 1, 2023 and before October 1, 2024 (i.e., the 2023 plan year for calendar year plans), Patient-Centered Outcomes Research Institute (PCORI) fees will be $3.22 multiplied by the average number of covered lives – an increase from the 2022 rate of $3.00.
Key Action
Submit PCORI payment via IRS Form 720 for 2023 plan year by July 31, 2024.
Under the ACA, self-insured health plan sponsors and health insurance issuers must pay annual fees to the Patient-Centered Outcomes Research Trust Fund (PCORTF) by July 31 each year. The fees, along with payments from the Medicare program, help fund the PCORI. The fees were extended for 10 years through 2029 by the Further Consolidated Appropriations Act, 2020, enacted in December 2019.
Employers must use IRS Form 720 to report and make payments for the 2022 plan year by July 31, 2024.
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If you have questions, comments, or concerns about these or other regulatory and compliance issues, please contact us.
We provide this material for informational purposes only; it is not a substitute for legal advice.
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