The government has just recently made available the "Transitional Reinsurance Annual Enrollment and Contributions Submission Form" through their official government website. This document will enable health insurance issuers, and those company sponsored self-insured group health plans offering medical coverage, to comply with the required steps related to the Transitional Reinsurance Program as outlined in the Affordable Care Act (ACA).
What is the Transitional Reinsurance Fee?
As part of the ACA, the government enacted an additional fee to help cover the costs related to the creation and administration of the Health Insurance Marketplace. This three year fee is based on those "covered lives" within each major medical healthcare plan. The amount per covered life is $63 and $44 for 2014 and 2015 plan years, respectively.
Who is affected by this?
The fee applies to all health insurance plans; however those employers who have submitted and paid their Patient-Centered Outcomes Research Institute (PCORI) fees earlier in the year are directly affected by this reporting requirement. The deadline for registration and submission of this form is November 15, 2014. Unlike the PCORI fee however, third party administrators (TPAs) can register and submit these fees on behalf of the plan sponsor. Please check with your TPA to ensure your plan is properly registered.
How do I pay?
Company plan sponsors will pay this fee through the official government website at www.pay.gov. As part of the registration process, companies will be asked to provide specific financial institution information that will allow for the payment of these fees. Those employers who have a traditional, fully-insured type healthcare plan will see these fees paid through their monthly healthcare premiums.
When is the fee due?
The fees are paid in two installments with the first being due January 14, 2015 ($52.50 per covered life) and the second installment ($10.50 per covered life) due in December 2015, 30 days after the dated invoice from Health and Human Services is expected to be mailed to plan sponsors sometime in November 2015.
For additional information of the many provisions of the Affordable Care Act, please contact your local UHY LLP professional.