PCORI Fees Due July 31, 2025

Employers who offered a Health Reimbursement Arrangement (HRA) or Medical Expense Reimbursement Plan (MERP) in 2024, are responsible for submitting the annual PCORI fees by July 31, 2025.  Please note that the deadline applies to all plans that ended in 2024.  To help organizations further understand the filing requirements, we’ve created an easy guide on how to complete IRS Form 720 and submit payment.

What is PCORI?

PCORI, or the Patient Centered Outcomes Research Institute, was first introduced in the 2010 Affordable Care Act (ACA) to help fund research for different medical treatments.  A portion of the institute’s funding comes from these fees imposed on group health plans.  PCORI fees apply to plans ending in years 2013 through 2029 (October 1, 2012 – September 30, 2029).

Understanding Your Responsibility: What’s Required of You

Employees/Participants

Participants enrolled in an HRA or MERP plan are not required to do anything for this filing.

Employers – PCORI Fees Due in 2025

• Employers are responsible for determining the number of lives covered.  Follow these steps to help calculate the number of covered lives under your plan:
  1. To calculate the number of covered lives, P&A clients can download a report in HR Connect, P&A’s secure employer portal.
  2. After you log into HR Connect, go to “Archived Reports.”  Select the applicable plan year and download the report labeled “MonthlyAccount_Balance.”
• Employers must file and pay the fee owed by the annual filing due date or risk an IRS penalty.  All employers are required to pay the fee, including government entities and church organizations.  Third Party Administrators (TPAs), like P&A, are not permitted to file on behalf of clients.  The fee and filing must be completed by the plan sponsor or employer.
• For plan years ending in 2024, the fee per covered life is either $3.22 or $3.47, depending on your plan’s start and end date.

View the PCORI fee and payment schedule

Annual PCORI Filing Checklist for Employers

• Employers must complete Form 720 and submit the annual fee to the IRS.
• Pro Tip: While Form 720 is labeled “Quarterly Federal Excise Tax Return Form,” the fee is still owed on an annual basis.
• If you have any questions about the PCORI filing and fee, please contact your P&A Client Support Specialist for assistance or submit an inquiry to P&A Group.