If you’re an employer with a self-insured health plan, there’s a good chance you’ve encountered PCORI fees. But for many, this requirement flies completely under the radar. If you’ve never heard of it, you’re not alone.
What are PCORI Fees?
PCORI stands for the Patient-Centered Outcomes Research Institute. It was created as part of the Affordable Care Act to improve the quality and relevance of healthcare in the United States.
PCORI’s mission is to fund and conduct evidence-based research that helps patients, caregivers, and healthcare providers make better, more informed healthcare decisions. Instead of focusing on pharmaceutical development or clinical testing, PCORI centers its research around real-world outcomes studying what treatments work best for different patient populations.
For example, PCORI-funded studies might examine:
- Whether physical therapy or surgery provides better long-term outcomes for chronic back pain
- How different diabetes treatments affect people with varying socioeconomic backgrounds
- What approaches help cancer survivors manage mental health and recovery
To fund this research, the federal government established an annual fee called the PCORI fee on certain health insurance policies and self-insured health plans. While it may feel like just another box to check, this fee directly supports initiatives that aim to make healthcare more personalized, data-driven, and patient-focused.
Who Pays PCORI Fees?
For fully insured group health plans, your insurance carrier pays the PCORI fee. But if you offer a self-insured plan such as an ICHRA, QSEHRA, or other level funded health plans you, the employer, are responsible for calculating the fee, filing IRS Form 720, and submitting the payment.
How Much Is the 2025 PCORI Fee?
The fee is adjusted each year for inflation. For plan years ending:
- Before October 1, 2024, the fee is $3.22 per covered life
- On or after October 1, 2024, the fee increases to $3.47 per covered life
That includes employees, spouses, dependents, and even COBRA participants in many cases.
When are PCORI Fees Due?
The 2025 deadline to file and pay PCORI fees for calendar year plans is July 31, 2025. Missing the deadline or filing it incorrectly can result in penalties, delays, and IRS demand letters, none of which are fun to deal with.
This fee often gets overlooked, especially by employers who aren’t aware it’s their responsibility. The IRS doesn’t send a reminder, and most brokers or payroll providers don’t flag it either. But if you offer an HRA, ICHRA, QSEHRA, or any other self-insured plan, this is something you’re required to do.
Whether this is your first time hearing about it, or you’ve filed before but want someone else to handle it, Flyte can help.
How to Pay PCORI Fees
PCORI compliance isn’t just about writing a check. There’s a specific form (IRS Form 720), a specific quarter it must be filed under (ending June 30), and a specific line number (line 133). Getting any of those wrong can result in the IRS misapplying the payment—or worse, hitting you with penalties.
That’s where we come in.
Let Flyte Take Care of It
At Flyte HCM, we make PCORI compliance easy. Our PCORI filing service is designed for employers with self-insured health plans like ICHRA and QSEHRA.
Here’s how it works:
- We calculate your average number of covered lives using approved IRS methods.
- We will complete IRS Form 720 for you, accurately and on time.
- We provide a payment voucher with all the correct information.
- All you need to do is sign the form, write the check, and mail it in using our instructions.
That’s it. No guesswork. No stress. No late fees.
If you’re not sure whether this applies to you, or if it slipped through the cracks in past years, we’re happy to help you get back on track.
Prefer to handle it on your own? We’ve created a helpful guide that walks you through the process step by step. Check out our PCORI Fees Guide.
Let’s make compliance easy. We’ve got your back. Contact Flyte today.
