REINSURANCE ASSESSMENT FEE

Reinsurance Assessment Fee

The Reinsurance Assessment Fee funds a three-year reinsurance program designed to reimburse companies that insure high-cost patients through the individual health insurance market. The annual fee will be assessed for the first nine months of the 2014 to 2016 calendar years.

In 2016, the fee is $27 per average covered life per year. For the 2016 calendar year, of the annual $27 per average covered life contribution rate, $21.60 per average covered life is due in January 2017. The remaining $5.40 per covered life for 2016 was payable in the fourth quarter of 2017.

In 2015, the fee was $44 per average covered life per year. For the 2015 calendar year, of the annual $44-per-average-covered-life contribution rate, $33 per average covered life was payable in January 2016. The remaining $11 per average covered life will be payable later in the fourth quarter of 2016.

In 2014, the fee was $63 per average covered life per year. For the 2014 calendar year, of the annual $63-per-average covered-life contribution rate, $52.50 per average covered life was payable in January 2015. The remaining $10.50 per average covered life was payable late in the fourth quarter of 2015.

Remember, plan sponsors can pay the fee in full by the deadline of the first installment or make two payments.

How to Pay Reinsurance Assessment Fee for the 2016 Calendar Year

The form that plan sponsors are required to complete to calculate their contribution for the Reinsurance Assessment Fee is available now on Pay.gov.

How to access the form and pay the fee for the 2016 calendar year:

  1. 1. Register: Plan sponsors must register on Pay.gov if you haven't already. If you registered last year, you may have to change your password.
  2. 2. Complete contribution form: Go to Search at the top and type “2016 ACA Transitional Reinsurance.”
  3. Plan sponsors need to enter the average number of members in their health plan for the first nine months of 2016 calendar year on the contribution form on Pay.gov no later than Nov. 15, 2016.
  4. The form also requires information for a billing contact and billing address, an additional contact and an authorizing official. The form will automatically calculate the contribution amount(s).
  5. 3. Upload: Plan sponsors must upload supporting documentation only if submitting for four or more contributing entities per form. To help in the process, visit regtap.info and search the library for the Job Aid Manual and Job Aid.
  6. 4. Enter payment information: Plan sponsors must schedule a payment date by Nov. 15, 2016, by selecting “Type of Payment” based on plan sponsors’ preference on when to make the contribution. The first installment1 deadline is Jan. 17, 2017, and the second installment2 deadline is Nov. 15, 2017. Plan sponsors can also pay the fee in full by the deadline of the first installment.
  7. The Centers for Medicare and Medicaid Services is asking that payment dates be at least 30 days after submission of the count to allow for submission count corrections, if necessary.
  8. For more information about the process for filing your Reinsurance Assessment Fee counts and fees, review this CMS presentation.

ACH debit block information

  • Like last year, the ACH debit block that most businesses have on their bank account will need to be removed so that funds can be transferred for fee payment.

The feds are instructing groups to:

  • Contact your bank to have the the Agency Location Code or the ALC+2 added to the approved list.
  • Use 7505008016 as the Reinsurance Assessment Fee ALC+2 number for 2016 and USDEPTHHSCMS as the company name.

1$21.60 per average covered life
2$5.40 per average covered life

 

Submission Form Manual
 Quick start guide from CMS
Overview of Two Fees