July 2014 Health Care Reform

July 2014 Health Care Reform

by Posted on: July 22, 2014Categories: HR & Compliance   

Beginning in 2014, the Affordable Care Act (ACA) establishes the following three risk-spreading programs to provide payments to health insurance issuers that cover higher-risk populations and to more evenly spread the financial risk carried by issuers: a transitional reinsurance program, a temporary risk corridor program and a permanent risk adjustment program.

The transitional reinsurance program is intended to help stabilize premiums for coverage in the individual market during the first three years of Exchange operation (2014 through 2016) when individuals with higher-cost medical needs gain insurance coverage. This program will impose a fee on health insurance issuers and self-insured group health plans.  Most health insurers will pass the reinsurance fee to employers who have fully insured health plans.  The Clarke & Company Monthly Newsletter covers the compliance and cost impact to employers associated with the Reinsurance Fee.


Click the links below for to read legislative briefs:

HCR Fees-Special Rules for HRA’s

Reinsurance Fees Exception for Certain Self Insured Plans

Taxes & Fees Under the Affordable Care Act








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