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The Internal Revenue Service (IRS) has announced an updated Patient-Centered Outcomes Research Institute (PCORI) fee under the Affordable Care Act (ACA), as outlined in Notice 2025-61.

For plan years ending on or after October 1, 2025, and before October 1, 2026, the applicable dollar amount will be $3.84 per covered life—an increase of $0.37 from the previous year’s rate of $3.47.

The PCORI fee is reported and paid annually using IRS Form 720 (Quarterly Federal Excise Tax Return), which is due every July 31.

Background

The PCORI fee was created under the ACA to help fund research that evaluates and compares the effectiveness of medical treatments, services, and strategies to improve patient outcomes.

The fee applies to:

•    Insurance carriers providing specified health insurance policies, and
•    Employers or plan sponsors of applicable self-insured health plans.

Fees are calculated based on:

•    The average number of covered lives under the policy or plan, and
•    The applicable dollar amount for that plan year.

Although the PCORI fee was originally set to expire in 2019, it was extended through all plan years ending on or before September 30, 2029, under the Further Consolidated Appropriations Act of 2020.

If you have questions or need assistance with your organization’s PCORI fee calculation or filing requirements, please contact your Sisterson representative.