HHS Declares Its Intent to Change How It Collects the ACA Reinsurance Fee from Employer Plans, With Some Being Exempted
October 25, 2013
This week, the Department of Health and Human Services signaled that it plans to change how the $63 per covered life reinsurance fee will be collected, and that certain “self-insured, self-administered plans” will be exempted from the fee for the 2015 and 2016 benefit years. It is unclear at this time what self-insured plans HHS is thinking about exempting from the reinsurance fee. Several plans have been seeking exemptions, with multi-employer union plans pushing hardest, but it would be politically difficult to single out those plans without granting the exemption to others. The statement was buried in the Preamble to a final rule on financial integrity and oversight standards for the ACA exchanges. HHS states it intends to propose in future rulemaking to:
- Collect the annual reinsurance fee in two installments—the fee for reinsurance payments and administrative expenses will be collected at the beginning of the calendar year, and the fee for payments to the U.S. Treasury at the end of the calendar year; and
- Exempt certain self-insured, self-administered plans from the reinsurance fee for the 2015 and 2016 benefit years.
This means that it is likely the $63 reinsurance fee per covered life that is supposed to be collected in January 2015 will be split into two payments of $52.50 per covered live collected in January 2015, and $10.50 per covered life in December 2015.