The Patient Protection and Affordable Care Act ("PPACA") requires insurance issuers and self-funded group health plans to pay a fee to fund the Transitional Reinsurance Program.
The fees are due starting in 2014 and ending in 2016. Typically insurers will remit the fee for fully insured plans. Self-funded plans, however, are responsible for paying this fee themselves.
The fee for 2014 is $5.25 per participant per month (or $63 per year per participant). The fee can be paid in one installment or two. If paying in one installment, the 2014 fee is due January 15, 2015. If paying in two installments, the first installment of $52.50 per participant is due January 15, 2015 and the second installment of $10.50 per participant is due November 15, 2015.
NOTE: While the 2014 fees are paid in 2015, insurers and self-funded plans must register and provide information to Health and Human Services no later than November 15, 2014.
Here are the steps for registering/paying the fee:
- Go to www.pay.gov
- Input basic company information, contact information, annual enrollment counts for 2014, and bank account information from which the fee will be deducted;www.pay.gov will calculate applicable fee amount
- Select whether to pay in one or two installments and select payment dates
- Payment will automatically be deducted from the plan's designated account on the date(s) selected