IRS Adjusts PCORI Fee to $3.22 Per Covered Life for Plan Years Ending After October 1, 2023, and Before October 1, 2024

The Internal Revenue Service (IRS) has issued Notice 2023-70 to adjust the fee paid by insured and self-insured health plans to fund the Patient-Centered Outcomes Research Institute (PCORI). The amount of the PCORI fee is equal to the average number of lives covered during the plan year multiplied by the applicable dollar amount for the year. The applicable dollar amount is adjusted yearly to reflect inflation in National Health Expenditures, as determined by the Secretary of Health and Human Services. For plan years ending on or after October 1, 2023, and before October 1, 2024, the fee is $3.22.

The prior applicable dollar amount was $3.00.

This notice is effective for policy years and plan years ending on or after October 1, 2023, and before October 1, 2024. The Further Consolidated Appropriations Act, 2020, has extended the Patient-Centered Outcomes Research Trust Fund fee imposed by Internal Revenue Code sections 4375 and 4376 for 10 years. As a result of this extension, the fee will continue to be imposed through 2029.