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Agent News

  • Legislative Brief – Reinsurance Fees

    Reinsurance Fees Will Cost Group Health Plans

    Beginning in 2014, the Affordable Care Act (ACA) establishes the following three risk-spreading programs to provide payments to health insurance issuers that cover higher-risk populations and to more evenly spread the financial risk carried by issuers: a transitional reinsurance program, a temporary risk corridor program and a permanent risk adjustment program.

    The transitional reinsurance program is intended to help stabilize premiums for coverage in the individual market during the first three years of Exchange operation (2014, 2015 and 2016) when individuals with higher-cost medical needs gain insurance coverage. This program imposes a fee on health insurance issuers and self-insured group health plans.


Client News

  • Benefits Buzz Newsletter – Sept. 2014

    Did You Know?

    On July 22, 2014, two federal courts issued conflicting rulings regarding Exchange subsidies: the D.C. Circuit Court of Appeals struck down the availability of health insurance subsidies in states with federal Exchanges, while the 4th Circuit Court of Appeals upheld their availability in all states, including those with federal Exchanges.

    For now, subsidies will continue to remain available on all Exchanges for eligible individuals.