Written by Alden J. Bianchi and Gary E. Bacher
The Patient Protection and Affordable Care Act fundamentally changes the way that health insurance is regulated in the United States. These changes are part of an ambitious statutory scheme that comprehensively reforms insurance underwriting practices. Reforms include new guaranteed issue, availability, and renewability standards, along with modified community rating requirements. The Act also directs the Department of Health and Human Services to develop a series of “premium stabilization” programs, including the transitional reinsurance program, which will be funded by contributions from health insurance issuers and self-funded group health plans. This Mintz Levin advisory focuses on and explains how transitional reinsurance program fees will be determined and collected from health insurance issuers and plan sponsors of self-funded group health plans in 2014 and beyond.