Back to Form 8-K [form8-k3614.htm]
Exhibit 10.1

[Logo]
GEORGIA DEPARTMENT
 
 
OF COMMUNITY HEALTH

 

Nathan Deal, Governor
 
Clyde L. Reese Ill, Esq., Commissioner

--------------------------------------------------------------------------------

2 Peachtree Street, NW I Atlanta, GA 30303-3159 I 404-656-4507 I
www.dch.georgia.gov

 
March 3, 2014
 

Ms. Kathy Ryland
State Chief Operating Officer
WellCare of Georgia
211 Perimeter Center Parkway, NE
Suite 800
Atlanta, GA 303446

Re: PPACA Health Insurer Fee

Dear Ms. Ryland:

Section 9010 of the Patient Protection and Affordable Care Act (“PPACA”) and
section 1406 of the Health Care and Education Reconciliation Act (“HCERA”) of
2010 imposes an annual fee on qualifying health insurers such as WellCare. The
annual fee is effective 2014 and is scheduled to increase each year thereafter.
As you are aware, WellCare’s Medicaid premiums are funded by both the State of
Georgia and the federal government. Accordingly, the Georgia Department of
Community Health will fund its share of WellCare’s annual Health Insurer Fee.

Specifically, the Department of Community Health will reimburse WellCare the
amount of the Health Insurer Fee, including an adjustment for the full impact of
the non-deductibility of the Health Insurer Fee for Federal and State tax
purposes, including income and excise taxes related to the Affordable Care Act
Premium attributable to WellCare’s Georgia Families membership. The WellCare
Adjusted Fee shall be determined based on the final notification of the Health
Insurer Fee amount WellCare’s corporate office receives from the United States
Internal Revenue Service. The Department will pay their share of WellCare’s
Health Insurer Fee amount through the capitation payment process in a manner
developed by the Department and acceptable to the Centers for Medicare and
Medicaid Services (“CMS”). The Department will complete its reconciliation
within ninety (90) days of its receipt, from Well Care, of the final notice
identifying the fee amount from the Internal Revenue Service and supporting
documentation relevant to the amounts associated with the WellCare’s Georgia
Families membership. Payment will be made as soon as administratively possible
following calculation of the fee amount. As with all payments made by the
Department, this proposed plan is contingent on the availability of State funds.

Should you have additional questions regarding this matter, please contact John
Upchurch, Director of Reimbursement Services, at (404) 657-0229.

--------------------------------------------------------------------------------

Health Information Technology | Healthcare Facility Regulation | Medical
Assistance Plans | State Health Benefit Plan
 
Equal Opportunity Employer
 

--------------------------------------------------------------------------------

 
Regards,

 
 
/s/ Clyde L. Reese III
 
 
Clyde L. Reese III, Esq.,
 
 
Commissioner
 

CLR/lrr

CC:
Jerry Dubberly, Chief, Medical Assistance Plans
 
 
John Upchurch, Director, Reimbursement Services
 

--------------------------------------------------------------------------------

Health Information Technology | Healthcare Facility Regulation | Medical
Assistance Plans | State Health Benefit Plan
 
Equal Opportunity Employer