File Form 720 and Pay Your PCORI Fee: Even If You Are Late
Employers who sponsored a level-funded group health plan or an HRA integrated with a fully-insured group health plan with a Plan Year that ended during 2024 are required to file IRS Form 720 and pay the Patient-Centered Outcomes Research Institute (PCORI) fee.
That deadline has already passed — but if your organization hasn’t yet filed, filing late is better than not filing at all..
Why This Matters
The PCORI fee applies to most self-funded and level-funded employer health plans. For plan years ending during 2024, the fee was $3.22 or $3.47 per covered life (depending on which month the Plan Year ended).
Employers report and pay this fee each year on IRS Form 720, normally due by July 31st.
If you missed that deadline, you are technically late. However, the IRS may reduce penalties and interest when employers voluntarily correct filing oversights quickly — waiting only makes the penalties grow larger. Penalties and interest are 5.5% of the tax owed for each month or partial month that you are late.
What Employers Should Do Now
- File IRS Form 720 as soon as possible
- Complete the PCORI section of the form for your plan year ending in 2024.
- Calculate the PCORI fee based on your plan’s average covered lives.
- Submit payment with the form to the IRS.
- Keep documentation in your compliance records.
A Proactive Compliance Step
Even if you missed the July deadline, filing now demonstrates good-faith compliance and helps reduce additional exposure. It also ensures you’re up-to-date before planning for 2025 reporting requirements.
How Admin America Can Help
If you sponsored a level-funded plan and have questions about how to complete Form 720 or calculate the PCORI fee, our team is here to assist. We work with employers to stay compliant and avoid unnecessary IRS penalties.
Contact us today if you need help catching up on this important filing.
