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Reinsurance Fee


The Department of Health and Human Services (HHS) has released final rules on the Transitional Reinsurance Program fee under the Patient Protection and Affordable Care Act. In the final regulations, HHS estimates that a fee of $63 per plan participant will be needed to pay for the first year of the program, which is designed to reimburse insurance carriers for issuing policies for individuals with high health costs, starting in 2014. Employers with fully insured plans likely will see the fee passed down through their health plan carrier, while self-funded employers will be responsible for covering the fee directly.