HHS approves nearly 3,000 organizations for early retiree medical claims subsidies

Nearly 3,000 employers and unions – including many state and local government bodies – have been approved to receive reimbursements for their early retirees’ medical claims beginning this fall, the U.S. Department of Health and Human Services (HHS) announced Oct. 4. Created by the Affordable Care Act as one of many transition mechanisms to the new health insurance exchanges in 2014, the Early Retiree Reinsurance Program provides $5 billion in financial assistance to employers and unions to help them maintain coverage for early retirees ages 55 and older who are not yet eligible for Medicare. Businesses and other employers and unions that are accepted into the program will receive reimbursement for medical claims of their early retirees and their spouses, surviving spouses, and dependents. Savings may be used to reduce employer or union health care costs, provide premium or out-of-pocket relief to workers, retirees, and their families, or both. The program ends on January 1, 2014, when, under the health reform law, the state-based health insurance exchanges will be up and running. Applications are still being accepted.

HHS has set up a website, www.ERRP.gov, where sponsors can begin submitting information to qualify early retirees, spouses, surviving spouses, and dependents for claims reimbursements. Starting in October, sponsors with approved applications who submit funding requests will begin to receive reimbursement for eligible claims.

Employers and unions interested in the Early Retiree Reinsurance Program should visit www.ERRP.gov or call 1-877-574-3777 or 877-574-ERRP. Employers and unions can find the application form and application instructions, as well as other relevant guidance and regulations from HHS, online.

More information about the Early Retiree Reinsurance Program, a full alphabetical list of participants, and an interactive map displaying participants by State is available online. Going forward, this list will be updated every Friday. To find this information, please visit:
http://www.healthcare.gov/news/factsheets/early_retiree_reinsurance_program.html.