The Affordable Care Act imposes annual fees on employers with self-funded medical plans (including level and graded funded plans) and on fully insured plans with health reimbursement accounts (HRAs).

    This fee was instituted to help fund the Patient-Centered Outcomes Research Institute (PECORI), which conducts research to compare the effectiveness of various medical services used to treat, manage, diagnose, or prevent illness and injury.

    All fees are based on the average covered lives for an employer’s applicable twelve-month policy or plan year. The fees for a plan year ending between January 1, 2022, and September 30, 2022, is $2.79 per average covered life. The fees for a plan year ending between October 1, 2022, and December 31, 2022, is $3.00 per average covered life. All fees are due by July 31, 2023.

    Employers are responsible for paying the PCORI fee via IRS Form 720. For a link to this form and additional information from the IRS, please visit: Patient-Centered Outcomes Research Institute Fee | Internal Revenue Service (


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