CMS Provides Information On Process For Paying ACA’s Reinsurance Fee

In a recent question and answer, the Centers for Medicare and Medicaid Services (CMS) has announced that it will implement a streamlined process for the collection of reinsurance contributions.

Sec. 1341 of the Patient Protection and Affordable Care Act (ACA) establishes a transitional reinsurance program to help stabilize premiums for coverage in the individual market during the years 2014 through 2016. Department of Health and Human Service regulations provide that each “contributing entity” must make reinsurance contributions annually.

CMS indicates that a contributing entity, or a third-party administrator (TPA) on behalf of the contributing entity, can complete all required steps for the reinsurance contributions process on Pay.gov: registration, submission of the annual enrollment count, and remittance of contributions.

A form will be available via http://www.pay.gov where 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 November 15. The form will auto-calculate the contribution amounts. To complete the submission, entities also will submit payment information and schedule a payment date for remittance of the contributions. Pay.gov provides a ‘one-stop’ approach to complete the reinsurance contributions process.

CMS anticipates that it will offer training on this process beginning in late June. Contributing entities or TPAs can register at https://www.regtap.info to receive notices regarding upcoming trainings.

For more information, visit http://www.cms.gov/CCIIO/Resources/Fact-Sheets-and-FAQs/Downloads/Reinsurance-contributions-process-FAQ-5-22-14.pdf.