A federal spending bill enacted at the end of 2019 repealed three major taxes and fees under the Affordable Care Act (ACA)—the Cadillac tax, the medical devices excise tax and the health insurance providers fee.

The law also extended the PCORI fees for an additional 10 years.

The ACA created the Patient-Centered Outcomes Research Institute (PCORI) to assist health decisions by advancing comparative effectiveness research. The Institute’s research is funded, in part, by fees paid by health insurance issuers and sponsors of self-insured health plans.

For self-insured employers and employers with Health Reimbursement Arrangements (HRAs), PCORI fees are required to be paid annually on IRS Form 720 by July 31 of each year. They were scheduled to expire for policy or plan years ending on or after Oct. 1, 2019. Under the new law, the PCORI fees will now apply for the 2020-2029 fiscal years.

The next PCORI fee payment will be due July 31, 2020.

Contact your NEEBCo representative with questions.

PCORI Fees Reinstated Through 2029