On September 30, 2020, CMS released new guidance on the treatment of risk corridors (RC) recovery payments. The RC program was one of three premium stabilization programs that were part of the Affordable Care (ACA) and operated from 2014 to 2016. The program did not fund all payments calculated for issuers that operated in the individual and small group markets as originally scheduled. As a result of a Supreme Court ruling, issuers are entitled to receive any remaining RC payments owed.
Risk Corridors Recovery Payments Could Result in Approximately $300 Million in MLR Rebates