Dive Brief:
- The Centers for Medicare and Medicaid Services issued reports last week on reinsurance contributions under the Affordable Care Act and rate-filing requirements for 2016.
- According to CMS, as of March 31, the Department of Health and Human Services had collected just short of $8.7 billion in reinsurance contributions and is expecting another $1 billion on or before November 15.
- The date set by CMS for insurers to submit their proposed rate filing justifications to both CMS and their states is May 15.
Dive Insight:
The ACA's 2014 benefit collection target for reinsurance contributions was more than $12 billion, with around $10 million being allocated for reinsurance payments, $2 billion for the Department of Treasury fund and $20 million for administrative costs. CMS did not specify the cause of the shortfall.
The May 15 rate-filing date could prove to be problematic, as the ruling on federal healthcare exchange tax subsidies in the King vs. Burwell case won't be handed down until June.