The Reinsurance Fee is a fee paid by insured and self-insured plans to help fund the implementation of the Patient Protection and Affordable Care Act (“PPACA”). The fee is collected over a three-year period and the majority of the money will be used to fund a reinsurance program intended to lessen the impact of adverse selection in the individual market. For a fully-insured plan, the insurer will pay the fee, but for a self-insured plan, the employer is required to pay the fee. The employer can pay the fee at https://pay.gov/public/form/start/70746962.
- NOTE: The federal government recently announced issues related to the collection of the fee via its website. Specifically, the site receives payment via Automated Clearing House (“ACH”) debit, but certain bank accounts have “ACH Debit Blocks” which prevent the retrieval of funds or the delay in the retrieval of funds (between 2-3 weeks). To ensure the debit is received, employers should ensure the agency is added as an approved entity permitted to receive a debit.
- The following information should be given by the employer to its bank:
– Reinsurance Contribution Code: 7505008015
– Company Name: USDEPTHHSCMS
The employer is required to report the number of covered lives to the Department of Health and Human Services by November 15th.