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Affordable Care Act (ACA) Reinsurance Fee Will Cause Increased Rates to Some Individuals

The Affordable Care Act (ACA or health care reform law) provides that each state create a transitional reinsurance program during the first three years (2014-2016) of the exchange’s operation. If a state does not create a reinsurance program, HHS will operate the reinsurance program in that state.

The program aims to help stabilize premiums for coverage in the individual market and lower the effects of adverse selection. This is done by giving reinsurance payments to issuers that sign up high-cost individuals in non-grandfathered individual market plans.

Insurers are passing along this cost to individuals.  See this fact sheet from Anthem Blue Cross for more info.:
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