PCORI is funded through the Patient-Centered Outcomes Research Trust Fund (PCOR Trust Fund), which was established by Congress through the Patient Protection and Affordable Care Act of 2010. The PCOR Trust Fund receives income from three funding streams: appropriations from the general fund of the Treasury, transfers from the Centers for Medicare and Medicaid trust funds, and a fee assessed on private insurance and self-insured health plans (the PCOR fee).
PCORI receives 80 percent of the monies collected by the PCOR Trust Fund to support its research funding and operations. The Department of Health and Human Services (HHS) receives the other 20 percent of trust fund monies to support dissemination and research capacity-building efforts (the majority of HHS’s share goes to the Agency for Healthcare Research and Quality).
For government fiscal years (FYs) 2010 through 2012, the PCOR Trust Fund received a total of $210 million total in appropriations from general fund revenues. For FYs 2013 through 2019, the PCOR Trust Fund will receive $150 million from the general fund annually.
The trust fund began to receive monies from the PCOR fee in FY 2013. The fee is collected by the Internal Revenue Service (IRS) through Form 720. The PCOR fee for plan years ending on or after Oct. 1, 2016, and before Oct. 1, 2017, including 2016 calendar year plans, is $2.26 per covered person per year. PCORI does not establish, collect or otherwise administer the fee. All questions about this fee should be referred to the IRS.
Additional details on how PCORI is funded are provided in the authorizing law in Sec. 1183 and Sec. 9511, beginning on page 17 of this PDF.
You may also wish to visit the section of the IRS website that contains guidance and regulations related to the Patient Protection and Affordable Care Act.
Additional details about PCORI’s revenues and disbursements can be found in our annual financial reports and audits, which are available here.
Posted: June 1, 2012; Updated 2017