Humana (NYSE:HUM) could be on track to get a total of $575 million to $775 million in Patient Protection and Affordable Care Act (PPACA) three R’s money for all of 2014. Roughly three-quarters of the money could come from a temporary PPACA reinsurance program. Aetna may get $50 million and Assurant hopes to get $140 million from TaxpayerRe.
Humana Inc. says it could get about $240 million from the three new federal “three R’s” risk-management programs for the first half of the year.
Humana (NYSE:HUM) could be on track to get a total of $575 million to $775 million in Patient Protection and Affordable Care Act (PPACA) three R’s money for all of 2014. Roughly three-quarters of the money could come from a temporary PPACA reinsurance program.
Executives at WellPoint Inc. (NYSE:WLP) declined to talk about what think they could get from the three R’s programs.
See also:
Aetna may get $50 million in PPACA reinsurance money
Assurant hopes to get $140 million in PPACA ‘3 R’s’ money
The drafters of PPACA created the three R’s in an effort to stabilize the individual and small-group health insurance markets, by protecting insurers against any big swings in risk that might occur as a result of the new PPACA major medical underwriting, pricing and product design rules.
Insurers are supposed to pay $63 per commercial plan enrollee for the reinsurance program this year (A TAX). WellPoint (& TAXPAYERS) is on track to pay more than $840 million in PPACA reinsurance program fees this year, for example, and Humana (& TAXPAYERS) is on track to pay about $200 million in reinsurance fees. The companies won’t know what, if anything, they owe for the risk corridors and risk-adjustment programs until later.
The topic came up today during conference calls the companies held to go over second-quarter earnings.
