November 04, 2025
On November 3, 2025, the IRS released Notice 2025-61, which announces that the adjusted applicable dollar amount for calculation of PCOR fees for plan and policy years ending on or after October 1, 2025, and before October 1, 2026, is $3.84. This is a $0.37 increase from the $3.47 amount in effect for plan and policy years ending on or after October 1, 2024, and before October 1, 2025.
PCOR fees are payable by insurers and sponsors of self-insured plans (including level-funded plans, HRAs, and many point solution programs). The fees apply to retiree-only plans but do not apply to excepted benefits such as stand-alone dental and vision plans or most health FSAs.
The fee is calculated by multiplying the applicable dollar amount for the plan or policy year by the average number of covered lives. The fee is reported and paid on IRS Form 720 and is generally due by July 31 of the calendar year following the close of the plan year.
The PCOR fee requirement was originally enacted under the ACA, and later reinstated through the Further Consolidated Appropriations Act of 2020. The requirement will remain in place for plan/policy years ending before October 1, 2029.
For further information, review IRS Notice 2025-61. PPI clients can also download a copy of the PPI publication PCOR Fees: A Guide for Employers from the Client Help Center.
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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