Under the Affordable Care Act (ACA), health insurance issuers and self-funded group health plans are required to fund a transitional reinsurance program. This year, contributing entities must submit their annual enrollment count by Nov. 17, 2014.
To learn more about this fee, we encourage you to visit our CBGconnect portal today and download our Compliance Bulletin on this topic.
Below, you will find a brief overview of how this Fee may impact your business:
Who Must Pay the Reinsurance Fee
- Self-Insured: If you have a self-insured group health plan, the plan sponsor is liable for paying the reinsurance fees.
- Fully-Insured: If you have a fully-insured group health plan, the issuer of the health insurance policy is required to pay fees. However, please note that issuers will likely shift the cost of the fees to sponsors through premium increases.
How Much Is the Fee
- For 2014, the annual contribution rate is $63 per enrollee per year, or $5.25 per month.
- For 2015, the annual contribution rate will be $44 per enrollee per year, or about $3.67 per month.
Please download our Compliance Bulletin for information on how to determine the number of covered lives under a health plan.
How To Pay the Fee
- A contributing entity can complete all of the required steps on https://www.pay.gov.
- Using a contribution form, entities will provide basic company and contact information and the annual enrollment count for the applicable benefit year.
- The contribution form became available via www.pay.gov on Oct. 24, 2014
I hope that you find this summary helpful as you look to meet your company’s compliance requirements. If you have questions, please contact our team at 781-759-1222 or via email at info@CBGBenefits.com.