The risk corridor/reinsurance program of the Affordable Care Act (ACA) is expecting collections of $7.7 billion under the program this year to compensate insurance companies that suffered losses because of high claims in 2015.
The Department of Health and Human Services (HHS) will commence payments in March and wrap them up by June 30 when HHS releases the final payment reports.
Insurance companies pay $44 per covered life into the fund to help cover losses by those participating in the ACA marketplaces because of high claim expenses from covering the sick and elderly, whom, prior to the ACA, they might have legally rejected.
The program is slated to run from 2014 to 2016, but a permanent risk adjustment program will then kick in.
For the full story on how the Affordable Care Act (ACA, or Obamacare) affects your business, no matter how large or small, please obtain a copy of our comprehensive yet easy-to-follow Affordable Care Act Compliance Kit.