The Centers for Medicare & Medicaid Services (CMS) has announced the 2016 benefit year contribution rate and deadlines for the Affordable Care Act’s (ACA) Transitional Reinsurance Program.
Transitional Reinsurance Program Explained
The Transitional Reinsurance Program is a three-year program established by the ACA that requires employers sponsoring certain self-insured plans (“contributing entities“) to make contributions to support payments to individual market issuers that cover high-cost individuals.
2016 Contribution Rate and Deadlines
The 2016 Reinsurance Contribution Rate is $27.00 per covered life. For the 2016 benefit year, CMS will offer contributing entities the option to pay:
- The entire 2016 benefit year contribution in one lump sum payment, no later than January 17, 2017, reflecting $27.00 per covered life; or
- In two separate payments for the 2016 benefit year, with the first remittance due by January 17, 2017 reflecting $21.60 per covered life, and the second remittance due by November 15, 2017 reflecting $5.40 per covered life.
The annual enrollment count submission deadline for the 2016 benefit year is November 15, 2016. While not yet available, the 2016 ACA Transitional Reinsurance Program Annual Enrollment and Contributions form is expected to be available on www.pay.gov in time for the submission deadline.
More information on the reinsurance contribution process can be found in our section on the Transitional Reinsurance Program.