On May 22, CMS issued guidance (registration required) describing how plans, third-party administrators and insurers will pay reinsurance contributions required under health care reform for the next three years.
The guidance says a contributing entity can complete all required steps for the reinsurance contributions process on Pay.gov, including registration, submission of the annual enrollment count and remittance of contributions.
A form (expected to provide a ‘one-stop’ approach to complete the contribution process) will be available via www.pay.gov. Through the website, a contributing entity (or a TPA on its behalf) will provide basic company and contact information and the annual enrollment count for the applicable benefit year no later than Nov. 15. The form will calculate the contribution amounts. To complete the submission, entities will also submit payment information and schedule a payment date. CMS anticipates offering training on this process beginning in late June.
Under final rules issued in March 2013, the monthly contribution rate will be $5.25 per covered life in 2014, an annual rate of $63 per covered life. The transitional reinsurance program was established to stabilize premiums in the individual market during calendar years 2014 through 2016. For more information on the fee, go to Section 795 of the New Health Care Reform Law: What Employers Need to Know.