The IRS has released Notice 2020-84, which sets the applicable PCORI fee for plan years ending between October 1, 2020 and September 30, 2021 at $2.66 per covered life.

The Patient-Centered Outcomes Research Institute, or PCORI, is an institution set up by the Affordable Care Act (ACA) to conduct research to evaluate the effectiveness of medical treatments, procedures and strategies that treat, manage, diagnose or prevent illness or injury. Under the ACA, most employer sponsors and insurers were required to pay PCORI fees until 2019 or 2020, as it only applied to plan years ending on or before September 30, 2019. However, the PCORI fee was extended to plan years ending on or before September 30, 2029 as part of the Further Consolidated Appropriations Act, 2020.

The amount of PCORI fees due by employer sponsors and insurers is based upon the number of covered lives under each “applicable self-insured health plan” and “specified health insurance policy” (as defined by regulations) and the plan or policy year end date. The fee must be paid on or before July 31st each year.

To read more, download this legal alert, provided by TIG Advisors.