Transitional Reinsurance Fee Deadlines Approaches

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For 2016, the enrollment count submission is due by Tuesday November 15. In addition, for Plan Sponsors making the second of two installments for 2015, the fee is due Tuesday November 15.

As you may recall, the Transitional Reinsurance program was intended to help stabilize premiums in the individual market in and out of the Marketplace. The Centers for Medicare & Medicaid Services (CMS) has available the Annual Enrollment and Contributions Form Manual and a Quick Start Guide for resources.

A “contributing entity” is responsible for making the payments and is defined as an insurer for insured plans or an employer/plan sponsor or third-party administrator on behalf of a self-insured group health plan. This program will be in place from 2014-2016.

For current year, Plan Sponsors can go to pay.gov to obtain the required “2016 ACA Transitional Reinsurance Program Annual Enrollment and Contributions Submission Form”. The fee for 2016 is $27 per covered life.  If the plan sponsor will make one payment it is due January 17, 2017, or if in two payments, the first installment is due by January 17, 2017 and the second by November 15, 2017.

Payments must be made using an Automated Clearing House (ACH) debit on pay.gov. Plan Sponsors should have sufficient funds on the scheduled payment date as well as notifying the bank of the ACH to avoid any blocks by the bank.

Also see the Transitional Reinsurance Program Fee Flyer (no longer available) on our Keeping Up with Health Care Reform page.

Categories: Health Care Reform, Compliance | Tags: Transitional Reinsurance Fee , Fee , CMS , ACA | Return