Hidden costs of health insurance...employers and insurers face new fees

HRS Insight

The Affordable Care Act (ACA) imposes several new fees directly on health insurers and on employers sponsoring self-insured health plans that will have to be paid for the first time in 2013 and 2014. Both fees will be based on the average number of individuals covered under a plan or policy, which includes an employee’s dependents. One fee will help fund the Patient-Centered Outcomes Research Institute (PCORI), which was established by ACA to research comparative clinical effectiveness aimed at advancing the quality and relevance of evidence-based medicine and improving the value of health care. The other fee will be imposed in 2014, 2015 and 2016 to fund temporary reinsurance to help stabilize premiums in the individual market once exchanges are up and running and ACA’s insurance market reforms take effect.

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