HRAs Are Not Affected by the ACA’s $63 per EE per year Reinsurance Fee

January 9, 2013

HRAs are, and have been, misunderstood by many people for years and that continues to be the case regarding ACA’s $5.25 PEPM Reinsurance Fee. The point of this message is to inform you and confirm for you that HRAs integrated, or “wrapped” with a group health plan are not affected and will not pay this fee.


Many have not heard of the Three Rs (3Rs).  The ACA established three risk-spreading programs (hence 3Rs) to provide payments to health insurance issuers that cover higher-risk populations.  These three programs which will be effective in 2014 are:

  • Transitional Reinsurance Program
  • Temporary Risk corridor Program
  • Risk Adjustment Program

These three programs, one of which is temporary, are intended to help spread the risk created by the ACA and the newly insured for the issuers of coverage.

This story hit the news a few weeks ago as another fee with in ACA. You may recall the headlines “ACA has hidden $63 per year fee for employers”.

Once again…

This $63/yr, $5.25/month per employee fee does not apply to HRAs that are integrated with a group health plan.

So, the employers providing their group health plan through BEN-E-LECT’s EDHP™ Plans do not need to worry about this fee.

However, there will be other fees to worry about so watch for that information throughout the coming weeks.

Mark Reynolds, RHU

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One Response to “HRAs Are Not Affected by the ACA’s $63 per EE per year Reinsurance Fee”

  1. Asa Says:

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