The IRS released the new Affordable Care Act's (ACA) Patient-Centered Outcomes Research Institute (PCORI) fee for plan years that end on or after October 1, 2022, and before October 1, 2023 (see IRS Notice 2022-59).
Background: The PCORI fee was established under the ACA to conduct research to evaluate and compare the clinical effectiveness, risks, and benefits of medical treatments, services, procedures, drugs, or other items or strategies that treat, manage, diagnose, or prevent illness or injury. The PCORI fee is assessed on issuers of health insurance policies and sponsors of self-insured health plans. The fees are calculated using the average number of lives covered under the policy or plan, and the applicable dollar amount for that policy or plan year.
?The new PCORI fee for plan years that end on or after October 1, 2022, and before October 1, 2023, is $3.00; an increase of $.21 per covered life assessed for the same period last year ($2.79). Employers and insurers report this fee on the IRS Form 720 which is due by July 31, 2023.