How to Pay PCORI Fee Online: A Step-by-Step Guide
Every year, thousands of employers who sponsor self-insured health plans face one recurring compliance task: paying the PCORI fee to the IRS by July 31. With the 2026 deadline fast approaching for plan years ending in 2025, now is the right time to get your numbers ready and file correctly. This guide walks you through exactly how to pay PCORI fee online, what rate applies to your plan year, and how to complete the process without errors using IRS Form 720.
What Is the PCORI Fee and Who Must Pay It?
The Patient-Centered Outcomes Research Institute (PCORI) fee is a federal excise tax established under the Affordable Care Act (ACA). It funds comparative clinical effectiveness research to help patients and clinicians make better-informed healthcare decisions. The fee was originally set to expire in 2019 but was extended and now applies through plan or policy years ending before October 1, 2029.
Who pays it:
- Fully insured plans: The insurance carrier pays on behalf of the employer.
- Self-insured plans (including level-funded plans and HRAs): The employer or plan sponsor pays directly.
- HRA integrated with a fully insured plan: The carrier covers the main plan; the employer pays PCORI on the HRA separately.
If you are unsure whether your plan qualifies, see our page on Form 720 filing obligations or review IRS guidance directly.
2026 PCORI Fee Rates: What You Will Pay Per Covered Life
The PCORI fee rate depends on your plan year end date, not the calendar year. Per IRS Notice 2025-61, the updated rates are:
| Plan Year End Date | PCORI Fee Rate (Per Covered Life) | Form 720 Line | Payment Due Date |
|---|---|---|---|
| Jan 1, 2025 – Sep 30, 2025 | $3.47 | Line 133(c) | July 31, 2026 |
| Oct 1, 2025 – Dec 31, 2025 | $3.84 | Line 133(d) | July 31, 2026 |
| Jan 1, 2026 – Sep 30, 2026 | $3.84 | Line 133(c) | July 31, 2027 |
For most employers on a calendar-year plan ending December 31, 2025, the applicable rate is $3.84 per covered life, and payment is due by July 31, 2026.
How to Calculate the Number of Covered Lives
Your total PCORI fee equals: Average Covered Lives × Applicable Rate. The IRS permits three methods to determine average covered lives:
- Actual Count Method: Add the total lives covered for each day of the plan year, then divide by the total number of days.
- Snapshot Method: Count covered lives on one date per quarter, then divide the total by four.
- Form 5500 Method: Use the participant count from your Form 5500 annual report, adjusted by an IRS formula.
Note: Covered lives include employees, enrolled spouses, dependents, and COBRA participants. For HRA-only plans, count one life per participant — dependents are not included separately.
How to Pay PCORI Fee Online: Step-by-Step
Here is the fastest and most accurate way to handle your PCORI payment in 2026. Filing online through an IRS-authorized provider like eFileExcise720 eliminates manual calculation risk and paper-mailing delays.
Step 1: Gather Your Information Before You Start
Have these ready: your business EIN, total average covered lives for the plan year, the plan year end date to confirm the correct rate, and your preferred payment method.
Step 2: Register or Log In at eFileExcise720
Visit efileexcise720.com and create a free account or sign in. The platform is IRS-authorized and SOC 2 certified, so your data stays secure throughout the process.
Step 3: Select PCORI Fee Filing Under Form 720
From the dashboard, choose File PCORI Fee Online. The system automatically routes you to Part II, Line 133 of Form 720 — the Quarterly Federal Excise Tax Return used specifically for PCORI reporting.
Step 4: Enter Covered Lives and Confirm the Fee Amount
Input your average covered lives count. The platform automatically calculates your total PCORI fee using the correct rate for your plan year. No manual math required.
Step 5: Select Payment Method and Submit
Choose to pay via EFTPS (Electronic Federal Tax Payment System) or credit/debit card. Review the totals, confirm accuracy, and submit. IRS acknowledgment typically arrives within minutes.
Step 6: Save Your Confirmation and Records
Download and retain your IRS acknowledgment and Form 720 copy. The IRS recommends keeping PCORI records for at least three years following the due date of the return.
Online Filing vs. Paper Filing: A Quick Comparison
| Factor | Online Filing (eFileExcise720) | Paper Filing |
|---|---|---|
| Time to Complete | Under 5 minutes | 30 to 60+ minutes |
| IRS Confirmation | Received in minutes | Days to weeks by mail |
| Calculation Errors | Auto-calculated, error-checked | Manual, risk of mistakes |
| Record Keeping | Digital copies stored on platform | Physical copies only |
| Penalty Risk | Low (deadline alerts, validation) | Higher due to postal delays |
| Cost | Low flat fee, no admin overhead | Printing, postage, staff time |
Deadlines and Penalties You Need to Know
The PCORI fee is reported annually, even though Form 720 is otherwise a quarterly return. The filing always covers the second calendar quarter ending June 30 of the year following the plan year end. Missing the July 31 deadline triggers IRS failure-to-file and failure-to-pay penalties, plus interest on the unpaid amount.
If you filed late or need to correct a prior submission, see our Form 720 Late Filing and Form 720 Penalties and Interest pages. If you overpaid in a prior year, you may also be eligible for a refund via IRS Form 8849, which our platform supports as well.
Frequently Asked Questions
Q1: How do I pay PCORI fee online if I have never filed before?
Register at an IRS-authorized e-file provider like eFileExcise720. You will need your EIN, average covered lives count, and a payment method. The platform guides you through Form 720 Part II Line 133 and submits your return directly to the IRS within minutes.
Q2: What is the PCORI fee rate for 2026?
For plan years ending between October 1, 2025 and September 30, 2026 — including calendar-year plans ending December 31, 2025 — the rate is $3.84 per covered life per IRS Notice 2025-61. Plans ending January through September 2025 use the prior rate of $3.47.
Q3: Does my HRA require a separate PCORI fee payment?
It depends on your setup. If your HRA is integrated with a fully insured major medical plan, you owe PCORI on the HRA only, counting one life per participant without dependents. If your HRA is paired with a self-funded plan, the IRS allows you to treat them as a single plan to avoid double payment.
Q4: Is Form 720 required even if I pay through EFTPS?
Yes. Form 720 must be filed with the IRS regardless of how you make the payment. EFTPS handles the tax payment, but the formal return must still be submitted separately. An IRS-authorized e-file provider handles both steps in one workflow.
Q5: What happens if I miss the July 31 PCORI deadline?
The IRS assesses a failure-to-file penalty of 5% of unpaid tax per month up to 25%, plus a failure-to-pay penalty and interest. Filing late is always better than not filing at all. Our Form 720 Late Filing service can help you get caught up quickly.
Q6: Can I use the same platform to file Form 8849 for a PCORI overpayment?
Yes. If you overpaid PCORI in a previous plan year, you can claim a refund by filing a Form 8849 claim through eFileExcise720. The platform supports all major Form 8849 schedules and processes refund claims electronically so nothing needs to be mailed to the IRS.
Ready to file? Pay Your PCORI Fee Online at eFileExcise720
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