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Reinsurance Fee Unfair, Some Large Employers Say


  04:05:56 pm, by MedBen5   , 253 words,  
Categories: News, Health Plan Management

Reinsurance Fee Unfair, Some Large Employers Say

The transitional reinsurance fee hasn’t got nearly the same notoriety as other provisions of the Affordable Care Act, but for many businesses it may be a pricey little afterthought. Beginning in 2014, employers will pay an additional $63 for each person they cover, in order to create a fund for insurance companies to offset the cost of covering people with high medical bills. A lower fee (or so we’ve been told) will be imposed in 2015 and 2016.

According to The Wall Street Journal, the levy is expected to collect $25 billion over the next three years.

Most employers, even those who self-fund their coverage, will be required to pay the fee. Several major employers have protested the program, arguing the levy is unfair because it only subsidizes individually purchased plans that won’t cover their workers.

“It’s caught most employers, if not all employers, by surprise,” said Steve Wojcik, vice president of public policy at the National Business Group on Health in Washington, which represents large employers. The U.S. Chamber of Commerce and the Business Roundtable have also voiced concerns about the fee and asked regulators to delay its collection.

At many MedBen Universities this spring and summer, Vice President of Complaince Caroline Fraker will discuss the traditional reinsurance fee as well as other government-imposed costs that will take effect in 2014. To learn more about upcoming events, please contact MedBen Sales Analyst Sally Wood at

Additionally, if you’re interested in learning more about the reinsurance program, Thompson Information Services offers a Q&A.

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