ACA Update - Second Transitional Payments Due


Flock friendly reminder: For employers who opted for the Two-Part Contribution payment program. Your second transitional reinsurance payment is due November 15, 2017. 

Health insurance carriers and certain self-insured group health plans offering "major medical coverage" are considered “contributing entities”. So, If you offer a partially self-funded medical plan then this may apply to your organization. If you are unsure, please reach out to your trusted Insurance Broker to determine if this fee applies.

The 2nd reinsurance contribution payment for the 2016 benefit year is due no later than November 15, 2017. The payments are part of the three-year Transitional Reinsurance created by the Affordable Care Act, which began in 2014 and ended with the 2016 benefit plan year.

How Does it Work?

The Transitional Reinsurance Program requires the contributions to subsidize the individual market carriers which enroll and cover high-cost individuals. For the 2016 benefit year, two options were allowed to make these payments:

  1. Pay the entire 2016 benefit year contribution in a single lump sum ( $27.00 per covered life); or

  2. Make two payments, with the first, due on January 17, 2017 ($21.60 per covered life) and the second which is due in a few days, November 15, 2017.($5.40 per covered life, the difference)

For more information directly from the Center for Medicare & Medicaid Services - Click here


The information provided here does not constitute, nor serve as a substitute for legal advice. Please consult legal counsel to ensure all facts and circumstances are taken into account in complying with applicable state and federal law.