Reinsurance fee


The Affordable Care Act required contributions to be paid by health insurance issuers and self-funded group health plans to fund a Transitional Reinsurance Program in place from 2014 to 2016. The program used the fund to pay insurers in the individual market that cover high risk individuals. The program ended in 2017 with the final payments to the fund by issuers and self-funded group health plans.

The Department of Health and Human Services (HHS) established standards to determine high-risk individuals, a formula for payment amounts, and the contributions required of insurers, which totaled $25 billion over the three years.

  • $12 billion in 2014
  • $8 billion in 2015
  • $5 billion in 2016

For fully insured plans, UnitedHealthcare collected the Transitional Reinsurance Fee through premium rates. Self-funded plans funded and remitted the Reinsurance Fee for their group.

The program has now ended.