CHA News Article

HHS Discourages Third Party Premium Payments in Marketplaces
Issuers encouraged to reject third party payments

The U.S. Department of Health and Human Services (HHS) has released the attached guidance regarding third party payors being permitted to make premium payments to health insurance issuers for qualified health plans on behalf of individuals enrolled in marketplaces (exchanges). In the guidance, HHS states it has “significant concerns with this practice because it could skew the insurance risk pool and create an unleveled field in the Marketplaces.” HHS discourages the practice and encourages issuers to reject such third party payments, stating that it intends to monitor this practice and take appropriate action if necessary.