The Center for Consumer Information & Insurance Oversight (CCIIO) has set up a Web page that explains how health insurers and group health plan sponsors will send cash to the Transitional Reinsurance Program. ”Contributing entities” are supposed to use the federal government’s Pay.gov system to send “contributions” to the program by Martin Luther King Jr.’s birthday anniversary — Jan. 15, 2015.
The first payment will be equal to the product of $52.50 and the number of lives the entity covers. The first reinsurance program covered life count is due Nov. 15, 2014.
A second payment – for $10.50 multiplied by the number of covered lives — will be due Nov. 15, 2015. A contributing entity can simplify the process by sending a payment for $63 times the number of covered lives through Pay.gov by Jan. 15, 2015.
The reinsurance program payment submission form will take the covered-life count and calculate the payment for the entity, CCIIO officials say. CCIIO is the U.S. Department of Health and Human Services agency that oversees the parts of the Patient Protection and Affordable Care Act (PPACA) that have to do with commercial health insurance.
PPACA now requires health insurers to sell and price major medical insurance without using information about people’s health problems.
Section 1341 of PPACA calls for the reinsurance program to try to stabilize individual health insurance premiums, both inside and outside the PPACA public exchange system, by protecting individual health insurers against the risk of covering people with health problems. All major medical insurers and many self-insured group health plans are supposed to contribute to the reinsurance fund.
See also: IRS sets health tax rules