Benefits
Update
Newsletter
Update
Newsletter
The Transitional Reinsurance Program
The Health Care Reform Act established a transitional reinsurance program in an attempt to stabilize premium prices for health insurance plans in the individual market. Because the Health Care Reform Act prohibits insurers from denying coverage based on pre-existing medical conditions, there were concerns that the individual market would disproportionately attract individuals with significant unmet medical needs. The reinsurance contributions are intended to reduce the uncertainty of insurance risk with high-cost enrollees in the individual market by partially offsetting this risk with these contributions.