The latest draft of regulations released by the Obama administration proposes administering a ‘user fee’ on the insurers that plan to market their products through the Federally Facilitated Exchanges (FFEs). The twenty-one U.S. states that refused to set up a State-based Exchange and the five others that are currently electing for a State-Federal Partnership Exchange would be playing host to federal exchanges.
Starting in 2014, the ‘assessment’ or ‘user fee’ fee will be charged monthly at 3.5 percent of the monthly premium amount levied by the insurer for a particular plan. Therefore, the final monthly amount will vary from one insurer to another, depending on the number of consumers that enroll in a specific health policy through the marketplace. Still, this cut into each insurer’s pockets may leave insurers wanting to raise premiums to make up the difference.