42-U.S.C.-18062
§18062 – Establishment of Risk Corridors For Plans In Individual and Small Group Markets
Pathway
Title 42 > Chapter 157 > Subchapter III > Part E > Section 18062
Details
- Reference: Section 18062
- Legend: §18062 – Establishment of Risk Corridors For Plans In Individual and Small Group Markets
- USCode Year: 2011
Provision Content
(a) In general
The Secretary shall establish and administer a program of risk corridors for calendar years 2014, 2015, and 2016 under which a qualified health plan offered in the individual or small group market shall participate in a payment adjustment system based on the ratio of the allowable costs of the plan to the plans aggregate premiums. Such program shall be based on the program for regional participating provider organizations under part D of title XVIII of the Social Security Act [42 U.S.C. 1395w–101 et seq.].
(b) Payment methodology
(1) Payments out
The Secretary shall provide under the program established under subsection (a) that if—
(A) a participating plans allowable costs for any plan year are more than 103 percent but not more than 108 percent of the target amount, the Secretary shall pay to the plan an amount equal to 50 percent of the target amount in excess of 103 percent of the target amount; and
(B) a participating plans allowable costs for any plan year are more than 108 percent of the target amount, the Secretary shall pay to the plan an amount equal to the sum of 2.5 percent of the target amount plus 80 percent of allowable costs in excess of 108 percent of the target amount.
(2) Payments in
The Secretary shall provide under the program established under subsection (a) that if—
(A) a participating plans allowable costs for any plan year are less than 97 percent but not less than 92 percent of the target amount, the plan shall pay to the Secretary an amount equal to 50 percent of the excess of 97 percent of the target amount over the allowable costs; and
(B) a participating plans allowable costs for any plan year are less than 92 percent of the target amount, the plan shall pay to the Secretary an amount equal to the sum of 2.5 percent of the target amount plus 80 percent of the excess of 92 percent of the target amount over the allowable costs.
(c) Definitions
In this section:
(1) Allowable costs
(A) In general
The amount of allowable costs of a plan for any year is an amount equal to the total costs (other than administrative costs) of the plan in providing benefits covered by the plan.
(B) Reduction for risk adjustment and reinsurance payments
Allowable costs shall 18061 and 18063 of this title.
(2) Target amount
The target amount of a plan for any year is an amount equal to the total premiums (including any premium subsidies under any governmental program), reduced by the administrative costs of the plan.
(Pub. L. 111–148, title I, §1342, Mar. 23, 2010, 124 Stat. 211.)
References in Text
The Social Security Act, referred to in subsec. (a), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Part D of title XVIII of the Act is classified generally to part D (§1395w–101 et seq.) of subchapter XVIII of chapter 7 of this title. For complete classification of this Act to the Code, see section 1305 of this title and Tables.
U.S. Encyclopedia of Law Coverage
Part E – Reinsurance and Risk Adjustment in the Legal Encyclopedia: Public Health
In this entry about Part E – Reinsurance and Risk Adjustment, find legal reference material, bibliographies and premiere content related to public health in the American Encyclopedia of Law, presenting a comprehensive view of the United States public health-specific issues, written by authorities in the field.
Subchapter III – Available Coverage Choices For All Americans in the Legal Encyclopedia: Health Care
In this entry about Subchapter III – Available Coverage Choices For All Americans, find legal reference material, bibliographies and premiere content related to health care in the American Encyclopedia of Law, presenting a comprehensive view of the United States health care-specific issues, written by authorities in the field.
42-U.S.C.-18054 in the Legal Encyclopedia: Affordable Health
In this entry about 42-U.S.C.-18054, find legal reference material, bibliographies and premiere content related to affordable health in the American Encyclopedia of Law, presenting a comprehensive view of the United States affordable health-specific issues, written by authorities in the field.
Leave a Reply