Upcoming Deadline for Second Transitional Reinsurance Program Payment
Payment Due November 15 for Contributing Entities Opting for Two-Part Contribution
The second transitional reinsurance contribution payment for the 2016 benefit year is due by November 15, 2017, for issuers and certain self-insured group health plans (referred to as “contributing entities”) that did not previously pay the entire 2016 benefit year contribution in one payment. The contributions are part of the three-year Transitional Reinsurance Program established by the Affordable Care Act.
Reinsurance Contribution Process
The Transitional Reinsurance Program began in 2014 and continued through 2016, and required contributing entities to make contributions to support payments to individual market issuers that cover high-cost individuals. For the 2016 benefit year, contributing entities were given the option to either:
- Pay the entire 2016 benefit year contribution in one payment (no later than January 17, 2017 reflecting $27.00 per covered life); or
- Make two separate payments, 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.
Click here for more on the Transitional Reinsurance Program.
