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PCORI Fees 2026: What Employers Need to Know Before July 31

Important Deadline: PCORI Fees 2026 are due July 31, 2026. Self-insured health plan sponsors must file using IRS Form 720. Don't miss the deadline — penalties start immediately.

What Are PCORI Fees?

If you sponsor a self-insured health plan or issue health insurance policies, you've likely heard about the PCORI fee. But with rates updated for 2026, now is the right time to make sure you understand exactly what you owe, how to calculate it, and how to file on time.

The PCORI fee — short for the Patient-Centered Outcomes Research Institute fee — was introduced under the Affordable Care Act (ACA) to fund healthcare research that helps improve patient outcomes across the United States. It applies to health insurance issuers and sponsors of self-insured health plans.

Originally scheduled to expire in 2019, the fee was extended through 2029 by the Further Consolidated Appropriations Act. That means PCORI Fees 2026 are very much in effect — and so is your obligation to file.

PCORI Fees 2026: What Is the New Rate?

The IRS officially updated the PCORI fee rate through IRS Notice 2025-61. Here is a quick breakdown of the current and prior year rates:

Table 1: PCORI Fee Rates by Plan Year

The new rate of $3.84 per covered life represents an increase from last year's $3.47 — a difference that adds up quickly for employers with large health plans.

Who Must Pay PCORI Fees in 2026?

Not every employer pays the PCORI fee directly. Whether you owe it depends on the type of health plan you offer.

• Self-insured (self-funded) plan sponsors — Employers who fund their own employee health benefits are responsible for calculating, reporting, and paying the PCORI fee directly to the IRS using Form 720.
• Fully insured plan sponsors — If your employees are covered through a commercial insurance carrier, you do not need to pay the PCORI fee separately. The carrier already includes it in your monthly premiums.
• Level-funded plan sponsors — Level-funded plans are treated similarly to self-insured plans for PCORI purposes, which means the employer is still responsible for filing and paying the fee.
• HRA (Health Reimbursement Arrangements) — Employers offering standalone HRAs that are not integrated with a major medical plan may also owe PCORI fees.

Note: FSAs (Flexible Spending Accounts) that are employer-funded are generally exempt from the PCORI fee.

How to Calculate Your PCORI Fee for 2026

The PCORI fee is calculated by multiplying the $3.84 rate by the average number of covered lives in your health plan during the plan year.

Covered lives include employees, their enrolled spouses, and enrolled dependents. It does not simply mean the number of employees on your payroll.

The IRS allows two main methods to count covered lives:

1. Actual Count Method — Add up the total number of covered lives on each day of the plan year, then divide by the number of days in the plan year.
2. Snapshot Method — Count covered lives on a single day (or multiple days) in each quarter and average those numbers.

Most employers use the Snapshot Method because it is simpler to administer.

Quick Example: If your self-insured calendar-year plan had an average of 200 covered lives in 2025:

200 × $3.84 = $768.00 PCORI fee due by July 31, 2026

How to File and Pay: IRS Form 720

PCORI Fees 2026 are reported and paid using IRS Form 720 — the Quarterly Federal Excise Tax Return. Specifically, the PCORI fee is reported in Part II of Form 720.

Even though Form 720 is a quarterly return, the PCORI fee is filed only once per year — by July 31 following the end of the plan year.

When paying through EFTPS (Electronic Federal Tax Payment System), select Q2 under Tax Period on the Business Tax Payment page, since the PCORI fee is treated as a second-quarter payment.

Important: The IRS does not allow online filing of Form 720 directly on its website. You must use an IRS-authorized e-file provider like eFile Excise 720 to file electronically.

Unlike informational returns such as Form 5500, Form 720 is a tax return — so it must be filed by the employer or their accountant, not a third-party administrator.

If you overpaid or need to make corrections after filing, you may need to file Form 720-X — the Amended Quarterly Federal Excise Tax Return. And if you're eligible for a refund on excise taxes, Form 8849 is the right form to use.

2026 PCORI Filing Deadlines at a Glance

PCORI Fees 2026 — Filing Deadlines by Plan Year End

If your plan year ends December 31, 2025 (a standard calendar year), your PCORI filing deadline is July 31, 2026.

What Happens If You Miss the July 31 Deadline?

Missing the PCORI fee deadline is not just an administrative headache — it comes with real financial consequences.

• Failure-to-pay penalty: 0.5% of the unpaid fee per month (or partial month), up to a maximum of 25% of the total unpaid amount
• Interest charges: Accrues from the due date until fully paid, based on the IRS federal short-term rate plus 3%
• Penalty abatement: If you have a valid reason for missing the deadline, you may be able to request relief — but it's not guaranteed

Filing early is always the safer choice. The PCORI pre-filing window is currently open at eFile Excise 720, allowing employers to submit ahead of the rush.

Why File PCORI Fees Online With eFile Excise 720?

Filing your PCORI fee through an IRS-authorized e-file platform like eFile Excise 720 is faster, safer, and more accurate than paper filing.

Here's what you get:

• IRS-authorized e-file provider — fully compliant and secure
• 5-minute filing — no software downloads, no complicated forms
• Real-time IRS approval status — know immediately when your return is accepted
• SOC 2 certified — your data is protected at every step
• Support team available to help with questions

Whether you need to file Form 720 for PCORI, handle Form 720 late filing, or understand Form 720 penalties and interest, eFile Excise 720 has you covered.

Frequently Asked Questions

Q1. What is the PCORI fee rate for 2026?

The PCORI fee for plan years ending between October 1, 2025 and September 30, 2026 — including calendar year plans ending December 31, 2025 — is $3.84 per covered life.

Q2. When is the PCORI fee due in 2026?

For plan years ending in 2025, the PCORI fee must be reported and paid by July 31, 2026, using IRS Form 720.

Q3. Do fully insured employers need to pay PCORI fees?

No. If you have a fully insured health plan, your insurance carrier pays the PCORI fee and typically passes the cost through your premiums. You don't need to file Form 720 for this purpose.

Q4. What form is used to pay PCORI fees?

PCORI fees are paid using IRS Form 720 (Quarterly Federal Excise Tax Return), specifically reported in Part II of the form.

Q5. Can I file Form 720 for PCORI on the IRS website?

No. The IRS does not support direct online filing of Form 720 on its own website. You must use an IRS-authorized e-file provider like eFile Excise 720.

Q6. Does Form 8849 apply to PCORI fees?

Form 8849 is used to claim refunds on certain excise taxes. If you believe you have overpaid your PCORI fee or qualify for a refund on other excise taxes, Form 8849 may apply to your situation.

Q7. How long will the PCORI fee continue?

The PCORI fee is currently extended through plan years ending before October 1, 2029, as authorized by federal legislation.

Q8. What if I made an error on my Form 720 after filing?

You can correct a previously filed Form 720 by submitting Form 720-X, the Amended Quarterly Federal Excise Tax Return.

Final Thoughts

PCORI Fees 2026 have increased to $3.84 per covered life, and the July 31, 2026 deadline is approaching quickly. Whether you're a small employer with a self-insured plan or an HR professional managing benefits for a large workforce, getting your Form 720 filed accurately and on time is essential.

Don't wait until the last minute. File your PCORI fee online today with eFile Excise 720 — the IRS-authorized platform trusted by businesses nationwide.