IRS Increases PCORI Fee for 2021
The IRS recently announced a 12-cent increase in the PCORI fees for policy and plan years ending between October 1, 2020, and September 30, 2021. The fee per covered person, due July 31, has increased from $2.54 to $2.66. Self-insured plans are expected to pay the fee annually to the IRS, while insurers pay the fee on behalf of fully-insured plans.
As a reminder, the PCORI fee was created by the Affordable Care Act to fund the federal Patient-Centered Outcomes Research Institute trust fund. The purpose of the Institute is to conduct research comparing different forms and types of health care to determine which perform best and pose the greatest benefits and harms. This research allows patients, medical providers, insurers, and policymakers to make informed decisions regarding health care.
The PCORI fee was initially set to expire in 2019. However, the fee was extended an additional 10 years, through 2029, as part of the yearly spending bill at the end of 2019. Over the last five years, the PCORI fee has increased an average of 12 cents per year.