Human Resources
HHS Final Rule on Transitional Reinsurance Fee Adds to Employer Costs

HHS Final Rule on Transitional Reinsurance Fee Adds to Employer Costs


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A transitional reinsurance fee is being added to the penalties and taxes imposed on employers and their fully insured and self-insured group health plans by the Patient Protection and Affordable Care Act (Affordable Care Act). Effective April 30, 2013, and applicable for plan years beginning on or after January 1, 2014, self-insured and fully insured group health plans will have to pay a transitional reinsurance fee—$63 per capita in 2014—to fund the first year of a three-year reinsurance program to help stabilize premiums for individuals and small groups in the Exchanges (marketplaces).

The Aon Hewitt bulletin below discusses the amount of the fee, what entities have to pay and when, which plans are excluded, how to count lives, and tax deductibility, all of which are included in the final rule issued March 1, 2013 by the Department of Health and Human Services (HHS).

Download HHS Final Rule on Transitional Reinsurance Fee Adds to Employer Costs