Annual Reinsurance Contribution Rate

        HHS Issues Final Notice of Benefit
        and Payment Parameters for 2016


The Affordable Care Act (ACA) created a transitional reinsurance program to help stabilize premiums for coverage in the individual market during the first three years of Exchange operation (2014—2016). This program imposes a fee on health insurance issuers and self-insured group health plans.

The reinsurance program’s fees are based on a national contribution rate, which HHS announces annually.

     • For 2014, the annual contribution rate was $63 per enrollee.

     • For 2015, HHS lowered the annual contribution rate to $44 per enrollee.

     • For 2016, HHS lowered the annual contribution rate even more,
     to $27 per enrollee.

On Feb. 27, 2015, the Department of Health and Human Services (HHS) published its final Notice of Benefit and Payment Parameters for 2016. This final rule describes benefit and payment parameters applicable to the 2016 benefit year, including standards relating to:

     • The reinsurance program’s annual contribution rate for 2016.

     • The 2016 open enrollment period.

     • The 2016 annual limitations on cost-sharing.