IRS Updates Form 720 and Instructions for Payment of PCORI Fees

Author: Tracy Morley, XpertHR Legal Editor

June 12, 2013

The Internal Revenue Service (IRS) has updated Form 720, Quarterly Federal Excise Tax Return, to include two new lines for reporting and paying the Patient-Centered Outcomes Research Institute (PCORI) fee: 1) for sponsors of self-insured health plans; and 2) for health insurance issuers. The instructions to the form have also been updated. Although the form is titled Quarterly, and is typically used for quarterly payments of certain excise taxes, the PCORI fee is only paid annually.

The PCORI fee is imposed on health insurance issuers and sponsors of self-insured plans to help finance the PCORI, which is established by the Affordable Care Act. The fee applies to plan years ending on or after October 1, 2012, and extends through plan years ending before October 1, 2019.

The PCORI fee is due no later than July 31 of the year immediately following the last day of the plan year. As a result, the first PCORI payments for 2012 calendar year self-insured plans and certain fiscal year plans are due by July 31, 2013.

Additional Resources

Health Care Reform Resource Center