Risk Corridor U&I Part 1 Column 1 > Schedule T

[ScottE-AGIS]

I understand that the Corridor flows from Page 4 Line 2 supported by U&I Part 1 column 1. However, the corridor amounts are not supposed to be allocated to to states in Schedule T. This results in a disconnect between the total of schedule T and U&I part 1 column 1, line 9.

Is this correct?

[Glenn]

Hello Scott,
Another colleague and I consulted internally on your question. We currently are not aware of an exclusion on Schedule T for the Risk Corridor adjustment. Yes Page 4 line 2 is to tie to U&I part 1 , column 1, line 9 . Written premium direct total.

The written premium will be in schedule T as well. We are currently not aware of instructions noting an exclusion.

Since the Risk Corridor is a temporary program between the HHS and insurers to assist and balance the field for QHPs, there may be an adjustment on the premium tax forms.
This seems to make sense but we didn't look at the premium tax form today.

This could be researched further with those preparing the forms.

[Glenn]

Scott,
Here's an additional piece of information from some research a colleague did this morning. Note the CFR excerpt below. Code of Federal Regulations (CFR) Thefull reference is CFRTitle 42, Chapter IV, Subchapter B,Part 423, Subpart I,Section 423.400.
In particular the allowance of adjustments for premium exclusions on the premium tax form under certain circumstances.

Here's the code excerpt:
? 423.440 Prohibition of State imposition of premium taxes; relation to State laws.
(a) Federal preemption of State law. The standards established under this part supersede any State law or regulation (other than State licensing laws or State laws relating to plan solvency) for Part D plans offered by Part D plan sponsors.
(b) State premium taxes prohibited?
(1) Basic rule. No premium tax, fee, or other similar assessment may be imposed by any State, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa, the Mariana Islands or any of their political subdivisions or other governmental authorities for any payment CMS makes on behalf of Part D plan or enrollees under this part(including the direct subsidy, reinsurance payments, and risk corridor payments); or for any payment made to Part D plans by a beneficiary or by a third party on behalf of a beneficiary.
Most premium tax forms will include an adjustment linefor"excluded premiums".

Regards,
Glenn S Sackett