Applications for employers, unions and governments interested in getting financial assistance from the Early Retiree Reinsurance Program are now available online, here.
The Early Retiree Reinsurance Program was created as a result of the health reform law and offers financial help to employers to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare.
Employers with self-funded and insured plans are eligible to apply. This includes private companies, state and local governments, nonprofits, religious organizations, unions operating employee benefit plans, and other employers.
To participate in the program, an employer must:
• Have its application approved
• Be able to document claims
• Implement a program and procedures that generate - or have the potential to generate - cost savings for participants with chronic and high-cost conditions.
Employers participating in the program will be subject to audits of their health benefit plans.
The amount of reimbursement to the employer will be up to 80 percent of medical claims costs for health benefits between $15,000 and $90,000. Claims incurred between the start of the plan year (often January 1) and June 1 are credited toward the $15,000 threshold for reimbursement. However, only medical expenses incurred after June 1, 2010 are eligible for reimbursement under this program.
The program will continue until January 1, 2014 (unless federal funds earmarked for reimbursement are exhausted), when the health insurance exchanges begin operating and early retirees will be able to choose from the additional coverage options available.
To read an HHS fact sheet about this program, click here. (Not to be used for implementation purposes.This is intended as an advisory only and does not constitute any legal or tax advice. Consult a legal or tax professional for guidance regarding this regulation.)
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