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Transitional Reinsurance Fee For Health Plans

Healthcare_iStock_000010649746_IndustriesAs part of the Patient Protection and Affordable Care Act, self-insured health plans will be required to pay a transitional reinsurance fee starting at $63 per-year, per covered life or $5.25 per month. This fee is in addition to the PCORI fee. It is transitional in nature, spanning from 2014 through 2016. The fee applies to all enrollees in a plan, including employees, spouses and dependents.

Affected plans must remit initial enrollment counts to the Health and Human Services Department (HHS) by November 15th of each year (2014, 2015 and 2016), regardless of the plan’s fiscal year. HHS will use this information to calculate fees and provide first year invoices by December 15, 2014. First year payments are due to HHS by January 15, 2015.

Plan sponsors should work with their health consultants to determine the best method to calculate the necessary information.

For more information, please IRS.gov.

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