2021PCORI fees

IRS increases 2021 PCORI fee

Authored by Bukaty Companies on February 9, 2021

The annual Patient-Centered Outcomes Research Institute (PCORI) fee for plans ending between October 1, 2020, and October 1, 2021, is $2.66. This is an increase from the 2020 rate of $2.54.

Employers who are responsible for paying the annual fee must do so by July 31 of each year. Self-insured employers should pay the $2.66 per plan enrollee directly to the IRS
along with submitting Form 720. Employers who file the second-quarter Form 720 only to report the PCORI fee are not required to file in other quarters. Insurance providers
pay the fee for fully insured employers, but it may be collected through premiums. 

Not all health coverages are subject to the PCORI fee; for example, those who have a health savings account (HSA) plan are exempt. Refer to the IRS’s compiled list to 
find out which common health coverages are not subject to the fee as well as who is responsible for paying and reporting.

The annual PCORI fee is calculated by determining the average number of lives that are covered under a plan as well as a group’s plan year. There are four methods that plan sponsors can use to calculate the average number of lives covered for the duration of the plan year. As the July 31 filing deadline approaches, contact your Bukaty benefits consultant for assistance.