In this article, Garrett Fenton discusses the Affordable Care Act's (ACA) transitional reinsurance program and what it means for employers. This program will provide reinsurance payments to insurers that bring on high-risk individuals and will be funded through a three-year tax on employer-sponsored group health plans. While this program is not scheduled to begin for over a year, Fenton thinks that employers should start thinking about it now. "It is really just an involved, complex process, more complex than I think a lot of employers may be giving credit to at this point," he said.
"My experience has been that a lot of employers aren’t aware of these transitional reinsurance program contributions or aren’t as aware as they probably should be and haven’t done anything or enough at least to prepare for it," Fenton said, noting the financial liability that companies will incur. "I think one of the main takeaways at this point is that employers really need to start thinking about this and what they’re going to be doing to comply."