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HHS Proposes $63 Transitional Reinsurance Fee for Group Health Plans in 2014 | Aon

HHS Proposes $63 Transitional Reinsurance Fee for Group Health Plans in 2014


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The Department of Health and Human Services (HHS) issued a proposed rule on November 30, 2012 that will impose a transitional reinsurance fee on fully insured and self-insured group health plans to help stabilize premiums in the individual insurance market. The fee, which is proposed to be $63.00 per capita initially, will fund a reinsurance program to be established in each state by January 1, 2014. The program will operate from 2014 through 2016. The transitional reinsurance fee was implemented as part of the Patient Protection and Affordable Care Act (Affordable Care Act).

The Aon Hewitt bulletin below discusses the following:

  • The proposed 2014 contribution amount;
  • Contribution responsibility and collection methodology;
  • Plans subject to the transitional reinsurance fee;
  • How to determine the number of covered lives;
  • Tax deductibility; and
  • Next steps.

HHS Proposes $63 Transitional Reinsurance Fee for Group Health Plans in 2014