Last week, the Department of Health and Human Services (HHS) announced the first round of nearly 2,000 companies and other organizations approved for the Early Retiree Reinsurance Program. This is a federal program that was created as part of the health care reform law. The program reimburses employer-sponsored health plans for part of the cost of health benefits for early retirees and their spouses, surviving spouses and dependents. "Early retirees" are people 55 and older who are no longer active employees and are not eligible for Medicare.
This program went into effect June 23, 2010. Accepted companies and other organizations will receive payments retroactive to that date. The program ends on January 1, 2014, or when the $5 billion allocated to the fund runs out. At that time, early retirees should be able to find coverage through the health insurance exchange (another provision of the health care reform law).
See the full list of companies and other organizations approved, including several of our clients.
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