Seyfarth Synopsis: The IRS has announced the adjustment to the applicable dollar amount for the Patient-Centered Outcomes Research Institute (“PCORI”) Fee for 2022.
The Affordable Care Act (ACA) established the PCORI to support research on clinical effectiveness. The PCORI has been funded in part by fees paid by certain health insurers and sponsors of self-insured health plans. The PCORI fee is determined by multiplying the average number of covered lives for the plan year times the applicable dollar amount, and is paid annually to the IRS using Form 720. The applicable dollar amount as set by the IRS for 2021 was $2.66 per covered life.
On December 21, 2021, the IRS issued Notice 2022-4 announcing that the applicable dollar amount or “PCORI fee” for plan years ending on or after October 1, 2021 and before October 1, 2022 is $2.79 per enrollee.
The IRS previously announced the 2022 cost-of-living adjustments for employer-sponsored health and welfare plans and retirement plans. Those adjustments are summarized in our previous articles, Employee Health & Welfare Benefit Plan Limits and Looking to Save More? You’re in Luck!