2023 Patient-Centered Outcomes Research Institute fee payment due July 31, 2023
The Patient-Centered Outcomes Research Institute (PCORI) fee helps fund research that evaluates and compares health outcomes, clinical effectiveness, and risks and benefits of medical treatments and services.
- All states
- Regulatory and compliance
The PCORI fee for plan and policy years that end on or after Oct. 1, 2022, and before Oct. 1, 2023, is $3.00 per covered life. The fee, effective 2012–2029, is treated like an excise tax by the Internal Revenue Service (IRS). The increase is 7.53%. UnitedHealthcare will pay the fee for fully insured customers. Self-funded plans are responsible for paying the fee, which is due July 31, 2023.
Information needed for PCORI fee payment July 31, 2023
- For plan and policy years that end on or after Oct. 1, 2022, and before Oct. 1, 2023, the PCORI fee is $3.00 per covered life. The increase is 7.53%.
- For plan and policy years that end on or after Oct. 1, 2021, and before Oct. 1, 2022, the PCORI fee is $2.79 per covered life.
- The PCORI fee is assessed on all covered lives – including employees, retirees, spouses and dependents.
Coverage subject to the fee
The IRS maintains a website dedicated to PCORI and has a table that identifies the types of coverage subject to the PCORI fee.
Fully insured groups
UnitedHealthcare is responsible for filing Form 720 and paying the fee for fully insured coverage by July 31, 2023.
UnitedHealthcare fully insured customers do not need to take any action. However, fully insured customers with self-funded (ASO) health reimbursement accounts and flexible spending accounts (unless FSA is an excepted benefit) are required to pay the fee for each employee covered under the account.
Employers and plan sponsors are responsible for submitting IRS Form 720 and paying the PCORI fee by July 31. The IRS has a PCORI fee information website and instructions for completing the Form 720 are posted on the IRS website.
ASO groups may use one of three available counting methods:
- Actual count method
- Snapshot method
- Form 5500 method
Level Funded groups
All Savers® employer groups’ membership information will be posted to the employer website. Customers are required to complete and file the IRS Form 720. For general questions, contact Broker Services at 866-405-7174.
For questions, please contact your broker or UnitedHealthcare representative.