Issued by: Centers for Medicare & Medicaid Services (CMS)

Issue Date: October 07, 2014

Program Area: Reinsurance-Contributions (RIC)

Question: Can the reinsurance contribution be paid out of a self-insured plan's trust account?

Answer: Applicable to All Reinsurance Contributions Benefit Years: The U.S. Department of Health and Human Services (HHS) regulations do not specify or prohibit any particular source for the funds. The Centers for Medicare & Medicaid Services (CMS) refers issuers to the U.S. Department of Labor for any applicable restrictions under the Employee Retirement Income Security Act (ERISA). Please contact the U.S. Department of Labor at 202-693-8335 for any questions. The responsibility to make reinsurance contributions remains with the Contributing Entity and the decision to delegate the function of submitting the reinsurance contribution resides with the Contributing Entity.

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