In this article, Garrett Fenton addresses the Affordable Care Act's transitional reinsurance program, starting in 2014, which aims to stabilize the individual health insurance market by providing reinsurance payments to insurers that take on high-risk individuals. Fenton notes that although the first major compliance deadline for the program is still more than one year away, employers are urged to begin planning for the new procedures now. "It really is just an involved, complex process, more complex than I think a lot of employers may be giving credit to at this point," Fenton said.
In a series of questions and answers, Fenton discusses the rationale, compliance deadlines and the overall importance of paying early attention to the 2014 program. According to Fenton, his "experience has been that a lot of employers aren't aware of these transitional reinsurance program contributions . . . and haven't done anything or enough, at least, to prepare for it . . . [O]ne 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."