By Jerry Geisel, Crain News Service
WASHINGTON (Dec. 4, 2014) — Self-funded employers and other healthcare plan sponsors would have to pay $27 for each health plan enrollee in the third and final year of the Transitional Reinsurance Program authorized by the healthcare reform law, federal regulators proposed Nov. 21.
That $27 fee, to be paid in 2017, comes on top of an earlier disclosed $63-per-health-care-plan-participant fee that is to be paid next year and a $44-per-participant fee that is to be paid in 2016.
The fees, whose amounts were set by the U.S. Department of Health and Human Services (HHS), are intended to generate $25 billion in revenues over a three-year period as set by the Patient Protection and Affordable Care Act, including $12 billion in the first year, $8 billion in the second year and $5 billion in the third year.
The revenue generated by the program is to be used by the government to partially reimburse commercial insurers covering individuals with high healthcare costs.
Earlier, regulators said the 2014 fee could be paid in full with one $63-per-participant payment made by Jan. 15, 2015. Alternatively, rather than pay the full $63 by Jan. 15, 2015, employers could make a payment of $52.50 per participant on that date, with an additional $10.50-per-participant payment due Nov. 15, 2015.
Employers and healthcare plan sponsors also can choose between paying the 2015 and 2016 fees with one payment or with two payments.
The 2015 fee could be paid in full with one $44-per-participant payment made by Jan. 15, 2016, or with a $33 payment made by Jan. 15, 2016, and an $11 payment made by Nov. 15, 2016.
Similarly, the $27-per-participant fee for 2016 could be paid in full by Jan. 15, 2017, or with a $21.60 payment made by Jan. 15, 2017, and a $5.40 payment made by Nov. 15, 2017, according to HHS.
This report appeared on the website of Crain's Business Insurance magazine, a Chicago-based sister publication of Tire Business.