10-Year Extension for Reporting and Payment of PCORI Fees

The recent passage of the government spending bill left us celebrating the repeal of three ACA provisions: the health insurance tax (HIT), i.e., the tax on health insurers, the medical device tax and the “Cadillac” tax.

However, there is a trade-off in that the bill that includes a significant extension of the PCORI fees.

The Patient-Centered Outcomes Research Institute (PCORI) assists patients, providers, purchasers, and policymakers in making informed health decisions through the distribution of its research findings on comparative clinical effectiveness. Funding for the institute was introduced as a provision in the Affordable Care Act (ACA), applying to plan years beginning October 1, 2012, and ending before September 30, 2019. Health insurers and self-funded plan sponsors are responsible for making annual payments to fund each July 31 of the calendar year following the end of their plan year.

The new law extends the payment and filings for ten years. Self-funded plans and fully-insured health insurance carriers will continue these annual filings and payments for all plan years ending before October 1, 2029.

DOWNLOAD THE INFOBRIEF for more information on calculating the number of fees due on July 31, 2020.

We anticipate additional guidance from the IRS confirming the extension and amount of future fees.