Last Transitional Reinsurance Fee

Posted by BAS - 16 November, 2017

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The Affordable Care Act (ACA) created the Transitional Reinsurance Program to help keep premiums for coverage purchased through the Health Insurance Marketplace to a stable amount. Under the Program, insurers and sponsors of self-funded health plans are required to pay a fee based on number of participants in medical coverage. The fee is intended to be used to fund high claim costs for Marketplace enrollees.

The fee was due for 2014, 2015 and 2016, based on enrollment count, and the actual dollar amount of the fee increased over time. Employers and insurers were able to pay their fee in two installments.

For employers who chose to pay the 2017 fee in two installments, the second installment of the fee was due November 15, The only way to make the transitional reinsurance payment is through the Federal Reserve’s automated clearinghouse service. This is sometimes referred to as a “pull” transaction, meaning the Centers for Medicare & Medicaid Services will collect the fee by debiting the employer’s designated bank account on the date selected.

HR departments should make sure any lingering transitional reinsurance fee has been paid.

Topics: Health Care Reform (ACA)


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