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How to Calculate PCORI Fee
06-17-2024

How to Calculate PCORI Fee

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Form 720 PCORI fees must be filed by health insurance providers and employer sponsors every year by July 31st until 2029.

- For plan years between January 1st, 2023, and September 30th, 2023, the PCORI fee is $3.00 per covered life.

- For plan years between October 1st, 2023, and December 31st, 2023, the PCORI fee is $3.22 per covered life.

3 Popular Ways to Calculate Your PCORI Fee (When Filing Manually):

Here are three methods for calculating the PCORI fee, all of which determine the average number of lives covered under the plan for a given year:

The Actual Count Method: Count the actual covered lives on each day of the plan year and divide by the number of days in the plan year.

The Snapshot Method: Add the total number of employees covered on a specific date during each quarter of the plan year and divide by the number of dates on which a count was made.

The Form 5500 Method: Take a count of covered lives on the first day of your last policy year, add the total number of covered lives on the last day of the policy year, and divide by two.

To understand the above PCORI methods in detail with examples, read our PCORI Fee Reporting 2024 blog.

The Smart way to file your PCORI fee in 2024:

Why puzzle yourself with all these PCORI calculations? You can complete your PCORI fee payment online in just a few minutes.

Though there are 2 ways to file the PCORI fee, it is always better to file PCORI Online with an IRS Authorized efile provider like Simple720:

           ·        Online filing is faster and more accurate

           ·        Reduces the likelihood of manual errors.

           ·        Environment-friendly, as it eliminates the need for hard copies and postage costs associated with offline filing methods.

           ·        And most importantly it saves your time significantly 

Just 3 steps to file your PCORI fee with Simple720:

1. Create your free account and add your business details.

2. Select the PCORI fee, the relevant tax period, and the number of lives covered.

3. Our PCORI portal populates the amount to be paid. Pay a small processing fee and complete your filing.

Wrap-Up:

Filing the PCORI fee on time is mandatory. Don’t wait until the last minute, as manual filings can be cumbersome.

Switch to online filing and experience the convenience!


Pay PCORI Fee with Simple 720

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