This week, employers with a self-funded health plan administered by Starmark® who are required to pay the Reinsurance Assessment Fee will receive a letter providing their group’s “average number of covered lives” (using the Snapshot Count method). The letter will also be available in the Starmark Document Center. As a courtesy, the Broker of Record will receive a duplicate copy of the letter.
The Patient Protection and Affordable Care Act introduced the Reinsurance Assessment Fee to fund a three-year reinsurance program. The program is designed to reimburse companies that insure high-cost patients through the individual health insurance marketplace. The fee, assessed from 2014 through 2016, affects fully insured and self-funded health plans.
Plan sponsors of self-funded health plans are responsible for filing and paying the Reinsurance Assessment Fee. The form must be completed and sent to the IRS with payment information no later than November 16, 2015.
Click here to view a sample letter.