HHS Announces Changes to the 2015 Reinsurance Program

The Department of Health and Human Services (HHS) has published its final ruling in regards to the reinsurance three-year (2014-2016) transitional program. This program must be established in each state to help stabilize premiums through the exchange for when those individuals with higher medical costs sign up for insurance. Fees will be accessed to health insurance issuers and self-insured group health plans.

The changes include:

• a modified definition of a “contributing entity”  including what types of plans are exempt from reinsurance fees
• the 2014 and 2015 reinsurance contributions
• the payment schedule for reinsurance fees will now be made in two installments