The Affordable Care Act created a private, nonprofit corporation known as the Patient-Centered Outcomes Research Institute (PCORI). PCORI is designed to be an information resource that patients, clinicians, purchasers and policy-makers can use to make informed decisions about healthcare. To achieve this goal, PCORI manages a variety of effectiveness studies regarding the delivery of healthcare and the money to pay for these studies is raised by a PCORI fee.
The PCORI fee has been imposed for each plan year ending on or after October 1, 2012 but is scheduled to end for plan years ending on or after October 1, 2019. For fully-insured plans, the issuer calculates and pays the fee. Plan sponsors of self-insured plans are responsible for paying the PCORI fee.
The Internal Revenue Service (IRS) announced the fee amount for plan years ending on or after October 1, 2017 and before October 1, 2018 will be $2.39 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.