The IRS recently released Notice 2022-59, which outlines the Patient-Centered Research Institute (PCORI) fee rate for plan years ending on or after October 1, 2022 and before October 1, 2023. For these plans, the PCORI fee rate is $3.00 per covered life. The IRS previously released the PCORI fee rate for plan years ending on or after October 1, 2021 and before October 1, 2022, which is $2.79 per covered life.

Employers who sponsored self-insured group health plans in 2022 must submit the PCORI fee by July 31, 2023.

Plans Subject to the PCORI Fee

Employers with self-insured group health plans, including level funded plans and health reimbursement arrangements (HRAs), must pay the PCORI fee.


The PCORI fee was established as part of the Affordable Care Act (ACA) to fund research to evaluate the effectiveness of medical treatments, procedures and strategies that treat, manage, diagnose, or prevent illness or injury. The ACA requires certain carriers and health plan sponsors (i.e., employers) to pay the PCORI fee annually. Insurance carriers are responsible for paying PCORI fees on behalf of fully insured plans; whereas employers are responsible for paying the fee on behalf of self-insured plans.

Though the PCORI Fee was previously set to expire in 2019, the fee was extended an additional 10 years through 2029.

PCORI Fee Calculations

The PCORI fee is determined by the number of covered lives under each self-insured health plan and the rate per covered life (as determined by a plan year’s end date), as summarized below:

PCORI Fee = Rate Per Covered Life x # of Covered Lives Under the Self-Insured Plan

The IRS increases the rate per covered life each year depending on the value of national healthcare expenditures. The applicable rate per covered life is determined by a plan year’s end date. For the next filing due, employers will pay the fee for all plan years ending in 2022. The rates per covered life for plan years ending in 2022 are as follows:

Plan End DatesPCORI Fee Rate
For plan years that END January 2022 through September 2022$2.79 per covered life
For plan years that END October 2022 through December 2022$3.00 per covered life

For more on the PCORI fee, see the IRS PCORI Fee Q&A.

Employer Action Items

  1. Employers that only sponsored fully insured plans in 2022 have no action item (insurance carriers are responsible for paying the fee for these plans).
  2. Employers that sponsored self-insured plans in 2022 (including level funded plans or HRAs) should calculate the PCORI fee, report the fee on IRS Form 720, and pay PCORI fees to the IRS by July 31, 2023.

Additional Resources

DISCLAIMER: This communication is intended for information purposes only and should not be construed as legal or tax advice. It provides general information and is not intended to encompass all compliance and legal obligations that may be applicable to your situation. This information and any questions as to your specific circumstances should be reviewed with legal counsel and/or a tax professional.  

Diane Cross — Diane is a Client Compliance Consultant for Sequoia, where she works with our clients to optimize and streamline benefits compliance. In her free time, Diane enjoys spending time with her family, live music, and cycling.