NRECA to Pay Reinsurance Fee in 2014; Exempt in Following Years

The reinsurance fee is imposed on fully-insured and self-insured group health plans to fund the transitional reinsurance program, which the Affordable Care Act (ACA) requires each state to establish beginning in 2014. The transitional reinsurance program is intended to help stabilize premiums in the individual marketplace during the first three years (2014-2016) that the state-based insurance exchanges are in effect. The reinsurance fee also covers the amount appropriated for the ACA’s Early Retiree Reinsurance Program.

Fee for 2014; exemption in following years
NRECA will pay the reinsurance fee for NRECA group health plans for 2014. The fee for 2014 is $63 (or $5.25 per month) per covered life. It is due by January 15, 2015.*

The good news is that our preliminary assessment shows that NRECA group health plans will satisfy the requirements for exemption from the reinsurance fee for self-insured, self-administered group health plans in 2015 and 2016. There’s no exemption for 2014.

Note: HIPAA-excepted dental and vision plans, health savings accounts and health flexible spending accounts, and Medicare plans are exempt from the fee. Health reimbursement arrangements are excluded if they’re integrated with major medical coverage. Self-funded plans may use their third party administrator to transmit the fee.

If you have questions about the reinsurance fee, speak with your field representative, or contact the Member Contact Center at 866.673.2299 or contactcenter@nreca.coop.

*The fee can be paid in full by January 15, 2015, or in two installments due by January 15 and November 15, 2015.