IRS Announces PCORI Fee Increase


The Internal Revenue Service (IRS) issued a notice earlier this week announcing an increase in the dollar amount used to determine the Patient-Centered Outcomes Research Institute (PCORI) fee for the upcoming plan year.

The applicable dollar amount to be used for plan years ending on or after October 1, 2017, and before October 1, 2018, is $2.39.  The 13-cent increase from the previous year reflects increases in the projected per capita amount of national health expenditures in the coming months.

This fee, imposed on health insurance policy issuers and self-funded health plan sponsors, comes from provisions in the Affordable Care Act (ACA) aimed to ensure consistent funding for the PCORI.  From September 30, 2012, through October 1, 2019, fees are to be collected based on the average number of lives covered under a policy or plan multiplied by the applicable dollar amount for that policy or plan year. Therefore, this small increase in the applicable dollar amount could mean a significantly large increase in the amount insurers are paying for providing health coverage.