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PCORI - Is It a Federal Agency?
02-09-2025

PCORI - Is It a Federal Agency?

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Is PCORI a Federal Agency?

The Patient Centered Outcome Research Institute (PCORI) is a non-profit institute often mistaken for a federal agency. This institute was founded in the year 2010 under the Patient Protection and Affordable Care Act (ACA). 


The main aim of this institute is to help address the challenges faced by clinicians and their patients in getting their daily healthcare queries answered. Is PCORI a Federal Agency? What is PCORI? What are the main objectives of PCORI? Answers to all these questions and details on the functioning of PCORI are provided in this blog.


What is PCORI?

Created as part of the Affordable Care Act (2009), PCORI is an independent non-profit institution that is supported by a federal surcharge on insurance companies. PCORI is a government-sponsored organization charged with funding comparative effectiveness research (CER). ACA had authorized PCORI for 10 years, meaning the institute can function till the end of September, 2019. 


The main objectives of PCORI -

  • Research - This institute works towards providing a better understanding of prevention, diagnosis, and treatment options. 

  • Methodology - PCORI emphasizes on research methodology. 

  • Encouragement - This institute encourages other funding agencies to incorporate patient-centered research methods. 


Why was this institute established? The main reason why PCORI was established was to address the challenges faced by clinicians and patients in getting daily healthcare queries resolved. PCORI strives to close the gaps in evidence that is needed to improve healthcare outcomes.


Is PCORI a Federal Agency?

PCORI is not a federal agency. It is an independent, non-profit, non-governmental organization. The main purpose is to enable data-driven decision making for clinicians, patients, purchasers, and policy makers. The research conducted by PCORI helps in advancing the quality and relevance of evidence on how to prevent, diagnose, treat, monitor, and manage diseases. 


Key differences of PCORI from other federal agencies are -

  • PCORI is not part of the federal government, unlike the National Institutes of Health (NIH). It is an independent institute supported by Federal surcharge on insurance companies. 

  • The application and submission process in PCORI differs from federal agencies; the applications and submissions are more prescriptive and focused. 

  • PCORI incorporates patients and other stakeholders into the research process at multiple levels.


The Patient Centered Outcome Research Institute is often mistaken to be a federal agency, when it is actually a non-profit institute that is funded by the PCOR Trust. The PCOR trust receives funds from two main streams - statutory appropriations from the general fund of the Treasury and the PCORI fee. 


All self-insured health plans are required to pay the PCORI fee. PCORI funds comparative clinical effectiveness research through contracts rather than grant awards. These contracts are milestone- and deliverable-driven. The payment is strictly tied to expenses related to successful performance and achievement of contract milestones.

For more details about the PCORI funding refer to the official website.

In a nutshell


Is PCORI a federal agency? The short answer is “No”. PCORI is a non-profit organization that is funded by Federal surcharge levied on insurance companies. The PCORI fee is to be paid by self-insured health plans. This blog elaborates on what PCORI is, its objectives, and why PCORI is not a federal agency. At Simple 720 we are committed to simplify your tax filing process. 


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