What is PCORI?
PCORI (Patient-Centered Outcomes Research Institute) is a government program that taxes insurance plans to pay for research. See https://www.pcori.org/ for more information.
Who files PCORI?
Self-funded employers are required to report and pay this fee as a part of their second-quarter taxes.
See https://www.irs.gov/newsroom/patient-centered-outcomes-research-institute-fee for more information.
The PCORI fee is reported on a quarterly IRS Form 720 six months after the termination of your plan.
Box 133, raw form here (accessed 1/13/26): https://www.irs.gov/pub/irs-pdf/f720.pdf
This tax is based on an annually-adjusting Per-Member-Per-Year (PMPY) fee calculated from average enrollment.
Note: This fee is based on the total number of “covered lives”, not the total number of employees. You must pay the fee for each child and spouse covered on your plan as well as every subscriber.
How do I calculate my PCORI fee?
Our portal calculates the relevant parts of Form 720 on your behalf. Using the snapshot method, we multiple the plan’s average number of covered lives by the IRS-determined rate. We capture our calculation for the number of covered lives, the total fee, the applicable IRS PCORI deadline, and our methods in the PCORI Fee Calculator within each group’s Compliance tab.
This feature of the portal will be available for the group when the PCORI filing window is open. The feature is available for one year after the plan year ends.
Other Parts of Form 720
Companies report taxes for their PCORI obligations on the same form for quarterly excise taxes owed to the IRS (although health plan taxes are only due once per year). Other items on this Form 720 include taxes on things such as “bows, quivers, broadheads, and points” and “indoor tanning services”.
Since Yuzu does not collect information on our customers miscellaneous tax obligations across all services reported on IRS Form 720, we cannot help our customers by submitting this form on their behalf.
