The transitional reinsurance program was implemented to stabilize premiums in the individual market due to anticipated enrollment of higher risk individuals in the Health Insurance Marketplace when it opened in 2014. The fees collected are also intended to reimburse the U.S. Treasury for the $5 billion that was spent on the early retiree reinsurance program that began in 2010.
For 2014, the contribution rate is $63 per covered life per year. Final regulations have split this fee into two payments – one for each of the reimbursement programs. The contribution rate for 2015 is $44 per covered life and the contribution rate for the final year of the program has not yet been announced. Self-funded, self-administered plans are exempt from the transitional reinsurance fee for the 2015 and 2016 reporting years. Continue reading
Bell Associates 