2025 PCORI Fee Released

At A Glance

The PCORI fee for plan years ending on or after October 1, 2024, and before October 1, 2025, will be $3.47 per covered life.

Introduction

The Patient-Centered Outcomes Research Trust Fund fee applies to issuers of certain health insurance policies and plan sponsors of applicable self-insured health plans, and helps fund the Patient-Centered Outcomes Research Institute (PCORI). The PCORI fee will expire on the plan year ending after September 30, 2029.

New Fee

IRS Notice 2024-83 recently announced that the adjusted applicable amount for the PCORI fee for policy or plan years ending on or after October 1, 2024, and before October 1, 2025, will be $3.47 per covered life, based on the average number of lives covered under the policy or plan.

PCORI fees are annually reported and paid  using IRS Form 720 (Quarterly Federal Excise Tax Return). The fee payment is due by July 31 of the year following the last day of the plan year. For plan years ending in 2024, the PCORI fees are due by July 31, 2025.

IRS instructions for filing Form 720 include information on reporting and paying the PCORI fees, while the PCORI Overview page provides details on calculating the fee amount.

Next Steps

Employers who sponsor self-insured plans subject to the PCORI fee are responsible for filing Form 720 and paying the fee. Active Paylocity clients with Health Reimbursement Arrangement (HRA) services through Paylocity will receive an Average Covered Lives Report when the filing date nears.

Thank you for choosing Paylocity as your payroll tax and HCM partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a payroll service provider are encouraged to seek the advice of a qualified CPA, tax attorney, or advisor.