CMS Reinsurance Rule Raises Quota Share Questions

Law360 (February 20, 2020, 4:33 PM EST) -- Since 2017, the long-standing use of quota share reinsurance by Medicare Advantage organizations with respect to their Medicare Part C business has been questioned, and in several cases disallowed, by the Centers for Medicare & Medicaid Services.

During the past several years, participants in the Medicare Advantage marketplace have shared with CMS their concerns about the legal uncertainty resulting from CMS' lack of specific guidance on whether or not it will allow MAOs to continue to engage in quota share reinsurance transactions. 

On Feb. 5, a proposed rule by CMS was filed and made available for public inspection.[1] As part of...

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