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PCORI Fees Due July 31, 2026

 

Employers who offered a Health Reimbursement Arrangement (HRA) or Medical Expense Reimbursement Plan (MERP) in 2025 are responsible for submitting the annual PCORI fee by July 31, 2026.  Please note that the deadline applies to all plans that ended in 2025.  To help you navigate the filing requirements, we’ve created an easy guide on how to complete IRS Form 720 and submit your 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 are not required to do anything for this filing.

 

Employers – PCORI Fees Due in 2026

Employers are responsible for determining the number of covered lives under the plan and paying the fee.  Because this is an excise tax, the IRS requires the plan sponsor or employer to file directly; Third Party Administrators (TPAs) like P&A are not permitted to file or pay on your behalf.  To make calculating your covered lives simple, P&A clients can pull the data needed directly from HR Connect, our secure employer portal:

    1. Log into HR Connect.
    2. Go to Archived Reports.
    3. Select your plan year.
    4. Download the report labeled “MonthlyAccount_Balance” to see your monthly active participant counts.

For plan years ending in 2025, the fee per covered life is either $3.47 or $3.84, depending on your plan’s start and end date.

 

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, please contact your P&A Client Support Specialist for assistance or submit an inquiry to P&A Group.

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