Tax Update Blog

IRS Adjusts the Self-Insurance Annual Fee

November 14, 2022 | Blog
By Bailey Finney

The IRS has released (Notice 2022-59) the adjusted applicable dollar amount used for determining the PCORTF fee for policy and plan years ending on or after October 1, 2022, and before October 1, 2023. The fee is popularly known as the "PCORI fee", a reference to the Patient-Centered Outcomes Research Institute, which is funded by the levy. 

Section 4375 of the Internal Revenue Code imposes a fee on the issuer of specified health insurance policies while Section 4376 imposes a fee on the plan sponsor of applicable self-insured health plans for plans beginning after September 30, 2012, and before October 1, 2029. These fees are used to help fund the Patient-Centered Outcomes Research Trust Fund (PCORTF).

The updated PCORTF amount is $3.00 for plans that end on or after October 1, 2022, and before October 1, 2023. The amount was previously $2.79. This amount is then multiplied by the average number of lives covered during the year to calculate the total PCORTF fee. 

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