I wanted to briefly remind you about an upcoming deadline regarding the Reinsurance Fee program. The first deadline for paying reinsurance fees under the Affordable Care Act is January 15, 2015.
Under the ACA, health insurance issuers and self-funded group health plans are required to fund a transitional reinsurance program. Here is a brief overview of some key elements regarding this program:
- Health insurance issuers and sponsors of self-funded group health plans were required to submit their 2014 enrollment counts by Dec. 5, 2014.
- Contributing entities may use a two-installment payment schedule for the reinsurance fee. Under this schedule, reinsurance fees for 2014 are due as follows:
- $52.50 per covered life is payable by the deadline of Jan. 15, 2015; and
- $10.50 per covered life is payable by the deadline of Nov. 15, 2015
- Instead of using the two-installment payment schedule, contributing entities may elect to make a combined collection (first installment plus second installment).
I hope that you find this summary helpful as you look to meet your company’s compliance requirements.
If you have any questions, please contact the CBG Benefits team at 781-759-1222.