–Each state shall set up a reinsurance pool by January 1, 2014, to collect payments that will cover high risk individuals in the individual markets for three years. High-risk individuals shall be identified by a list of at least 50 but not more thn 50 high-risk conditions.
–The aggregate contribution for the reinsurance pool shall be $10 billion for 2014, $6 billion for 2015, and $4 billion for 2016.
–Risk corridors for 2014-2016 will be established, and reinsurance paid if a plan pays out more than 103% of premiums in claims. Likewise, if a health plan pays out less than 92% in claims, they will reimburse the pool.
–Premium tax credits will be available to taxpayers who earn less than 400% of the federal poverty level. Aliens lawfully present in the United States who earn less than 100% of the federal poverty level will also be eligible for the tax credit. In order to earn a tax credit, one must be enrolled in minimum essential coverage in an individual plan, not a group plan.