Wednesday, November 12, 2014

IRS Issues FAQs on Transitional Reinsurance Program

In "ACA Section 1341 Transitional Reinsurance Program FAQs", the Internal Revenue Service (IRS) indicates that:

"Section 1341 of the Affordable Care Act establishes a transitional Reinsurance Program to help stabilize premiums for coverage in the individual market during the years 2014 through 2016. The statute requires all health insurance issuers and third-party administrators on behalf of self-insured group health plans to make contributions under this program to support payments to individual market issuers that cover high-cost individuals (payment-eligible issuers)...The following questions and answers provide information on the treatment of contributions made under the Reinsurance Program."

To read more, click here.

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