(Bloomberg) -- The U.S. government will pay Anthem Inc. $742million and Humana Inc. $549 million to reimburse big insuranceclaims the companies covered under the Patient Protection andAffordable Care Act.

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The reinsurance payments -- which also went tofirms like Aetna Inc. and Assurant Inc. -- are designed tostabilize Obamacare’s nascent insurance markets by helping to covermore expensive claims. The figures disclosed Tuesday were in linewith what the companies had projected.

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Details of those payments and a related program that shiftsfunds among companies were released by the Centers for Medicare& Medicaid Services.

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The reinsurance program covers health insurers’ costs when anindividual member has particularly high medical bills. Thegovernment said the risk-transfer program is “working as intended”by moving extra funds to insurers that had large numbers ofpatients with HIV/AIDS and other costly conditions.

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The programs help “keep premiums stable and encourage insurancecompanies to compete on quality and price, not who can attract thehealthiest enrollees,” Kevin Counihan, whooversees the health insurance marketplaces at CMS, said in astatement.

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For 2014, when a patient ran up more than $45,000 in expenses,the U.S. paid the balance of the charges up to $250,000. To fundthe program, each insurer paid a $63-per- customer fee.

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Total payout

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In total, the U.S. will make about $7.9 billion in reinsurancepayments for 2014. The government already has collected about $8.7billion from insurers this year and expects to take in another $1billion by Nov. 15. Extra funds can be used for claims in lateryears.

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The U.S. also posted information Tuesday about risk adjustments,which transfers money from insurers with healthier customers tothose with sicker ones. The funds come only from other firms, notfrom taxpayers.

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Anthem, for instance, is paying $229.9 million to other carriersin the individual market, while getting $39.6 million in thesmall-group market, according to a Bloomberg analysis of CMS data.Humana is remitting $113 million in the individual market.

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The reinsurance program expires next year, while the riskadjustment program is permanent. Some of the payments areestimated, the government said, and may depend on how much money isultimately collected from insurers. The risk adjustment dataexcludes Massachusetts because the state ran its own program.

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The U.S. hasn’t yet disclosed information about the thirdprogram designed to help insurers adjust to Obamacare, called riskcorridors.

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About 6.3 million people had coverage through the AffordableCare Act’s markets at the end of last year. The law, passed in2010, stopped insurers from charging sick people more or denyingthem coverage entirely.

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Bloomberg calculated the payments to insurers from the U.S.report, which lists each transfer to subsidiaries separately.Representatives of Anthem and Humana didn’t respond to requests forcomment.

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Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.

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