How does the new Health Care Bill affect early retirees on OEBB plans?
The Early Retiree Reinsurance Program, or ERRP, is available through the U.S. Department of Health and Human Services (HHS). The ERRP was established by the Affordable Care Act to assist employers and plan sponsors in providing health care coverage for early retirees and their dependents. The program provides reimbursement to sponsors of participating employment-based plans for a portion of the cost of health benefits for early retirees, surviving spouses and their dependents. The ERRP became effective on June 1, 2010, and ends no later than January 1, 2014, or when the $5 billion in funds appropriated by Congress are exhausted, whichever comes first. Employers, or employer-sponsored plans like OEBB, that are accepted into the program can receive reimbursement for up to 80 percent of the costs for eligible claims between $15,000 and $90,000 incurred by eligible early retirees, spouses and their dependents. Reimbursements can only be used to reduce the health benefit premiums or health
