HCR Reinsurance Fees Possible Exemption for Certain Self insured Plans

The Affordable Care Act (ACA) creates a transitional reinsurance program to help stabilize premiums in the individual market for the first three years of Exchange operation (2014-2016) when individuals with higher-cost medical needs gain insurance coverage. The program imposes a fee on health insurance issuers and self-funded group health plans.

On Oct. 24, 2013, the Department of Health and Human Services (HHS) released an advance copy of a final rule under the ACA. In the final rule’s preamble, HHS states that it intends to issue a proposed rule that would make the following changes to the reinsurance program:

· Exempt certain self-insured, self-administered plans from the reinsurance fees for 2015 and 2016; and

· Modify the collection deadlines for the fees to reduce the upfront burden to plans and issuers.

For more information regarding this notice, please review the attached PDF. As always, please contact you Stellar representative with further questions.