Fees and taxes
The ACA includes fees that will be collected from health insurance carriers. Providence Health Plan has incorporated the following into small-group plan premiums:
- Health insurance industry fee, which helps fund federal and state exchanges and helps fund subsidies for low-income purchasers. The impact on premium is approximately 2.3 percent of premium in the first year.
- The transitional reinsurance fee, which collects funds that will be distributed to insurers that disproportionately attract individuals at risk for high medical costs. The estimated cost is between $5 and $6 per member, per month.
- The risk adjustment fee, which helps with the cost of the Risk Adjustment Program, and costs about $1 per member per year.
- The Patient-Centered Outcomes Research Institute fee, a temporary fee that began in 2012 and continues through 2019. The estimated cost is $2 per member, per year.