Thanks to fine-tuning of the Affordable Care Act by the Department of Health and Human Services (HHS), some self-insured employers have caught a break. Soon to be published rule modifications will exempt large, self-insured, self-administered health plans from paying reinsurance fees in 2015 and 2016. All employers will be required to pay the first-year fee for the program, beginning this year.
The fees are designed to help offset the costs incurred by insurers covering high-cost individuals purchasing coverage in public insurance exchanges. However, in order to address employer feedback that the fees are burdensome, HHS will accept payment in 2 installments – at the start of 2014 and at the end of the year.
According to the HHS, the proposed modifications are the result of listening sessions with interested parties about specific requirements of the act.
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