The PCORI Fee is a federal fee paid by certain health insurers and employers that offer self-insured health plans. It helps fund medical research that improves healthcare decisions and treatment outcomes.
Organisations that provide qualified health insurance coverage must submit and pay the fee on IRS form 720. Understanding the rules will help employers remain on track in order to stay clear of penalties.
What is the PCORI Fee?
The Patient-Centered Outcomes and Research Institute (PCORI) fee was established in the Affordable Care Act. This fee is used to fund research that compares the effects of different medical treatments and enhances the quality of care for patients.
Policymakers and healthcare providers utilize this information to make better decisions regarding the best treatment choices. The cost is applicable to a variety of health plans provided by employers and insurance companies.
The PCORI Fee: Key Facts Fee
- The law was enacted in the Affordable Care Act (ACA)
- Research that is focused on the patient
- The amount is paid annually by using IRS Form 720
- Calculated using the number of life covered under a health plan
Who Pays to Pay the PCORI Charge in 2026?
The PCORI fee is generally applicable to employers and insurers that offer specific types of health insurance.
Companies that must pay
- Insurance companies offering health insurance with a guarantee
- Employers who self-insure their health plans
- Companies that offer Healthcare Reimbursement Arrangements (HRAs)
- Medical plans that are employer-sponsored or level funded
Employers with self-insured policies must determine the cost according to the number of employees and dependents covered by the plan.
Who is Not Required to pay for the fee of PCORI?
Certain health insurance plans and benefits aren’t included in the fee for PCORI.
- Exempt Plans
- Stand-alone dental plans
- Stand-alone vision plans
- Health Savings Accounts (HSAs)
- Flexible Spending Accounts that are only for employees (FSAs)
The plans generally don’t provide significant medical insurance, therefore they do not have to pay the fees.
The PCORI fee rate for 2026
The PCORI fee rate is subject to change every year. For the filing due in 2026, the amount is based on the date that the year of health insurance ended.
2026 PCORI Fee Rates
$3.47 per life
Plan years that end January through September 2025
$3.84 per life
Plan years running from October to December 2025
The total cost can be calculated simply by multiplying the number of life insurance policies according to the current rate.
Example Calculation
If the plan covers 200 people and the cost is $3.84 The total cost for PCORI will be:
200 x $3.84 = $768
PCORI Fee Deadline 2026 for payment
The PCORI fee must be filed once per year using Form 720 – Quarterly Federal Excise Tax Return.
Although Form 720 is tax forms that are quarterly however, the PCORI fee is only reported once per year.
Important Deadline
Filing deadline: July 31, 2026
Form for taxation: IRS Form 720
Reporting quarter: Second Quarter
Failure to meet this deadline could result in interest and penalties due from the IRS.
How do I Filing PCORI Fees Online
Many businesses choose to file their PCORI fees electronically. Online filing helps reduce errors and speeds up IRS processing.
With Excise720 the businesses can file Form 720 online quickly and securely.
Benefits of Filing With Excise720
- Easy Form 720 electronic filing process
- Quick IRS filing
- Secure payment options
- Simple compliance with PCORI fee report
- Confirmation when the return is accepted
This allows insurance companies and employers to handle their excise tax obligations.
The Quick Checklist of PCORI Fees 2026 for the year 2026
Before you file, ensure that you have the following details in your file:
- Health plan year ending date
- Average number of lives covered
- The applicable PCORI fee rate
- IRS Form 720 filing details
Making this information available early can make sure that filing is easy.
Final Thoughts
This fee is a crucial annual obligation for many employers and insurance companies. Knowing the fee as well as the deadline and filing process can help businesses remain in compliance with IRS rules.
If your company requires filing the PCORI fee, an application like Excise720 will make the procedure easier and aid you file Form 720 online quickly and efficiently.
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