The Affordable Care Act created a private, nonprofit corporation known as the Patient-Centered Outcomes Research Institute (PCORI). PCORI is to be an information resource that patients, clinicians, purchasers and policy-makers can use to make informed health decisions. To achieve this goal, PCORI creates and manages a variety of effectiveness studies regarding the delivery of health care. The money to pay for these studies is raised by a PCORI fee.
The PCORI fee will be imposed for each plan year ending on or after October 1, 2012 and before October 1, 2019. Plan sponsors of self-insured plans are responsible for paying the fee. For fully-insured plans, the issuer must calculate and pay the fee.
The Internal Revenue Service (IRS) announced the fee amount for plan years ending on or after October 1, 2016 and before October 1, 2017 will be $2.26 per covered life. The fee must be reported using IRS Form 720 and paid no later than July 31st of the calendar year following the end of the plan year.