What is the early retiree subsidy program?
The early retiree subsidy program, effective through January 1, 2014, is a temporary reinsurance program that will help offset costs of coverage for companies that provide early retiree health benefits for those ages 55 and older who are not eligible for Medicare. It reimburses 80 percent of the cost between $15,000 and $90,000 of these employment based plan amounts adjusted each year for the consumer price index. Payments from the reinsurance program must be used to lower costs for the enrollees in the employer’s plan. There is $5 billion appropriated for this provision so funds are limited. The Secretary of the U.S. Department of Health and Human Services can stop taking applications for the reimbursement if funds run out. There is guidance and application information on the U.S. Department of Health and Human Services site, http://www.hhs.gov/ociio/regulations/index.html.
Related Questions
- Can sponsors use reimbursement funds from the Early Retiree Reinsurance Program to pay for expenses that are created by participation in the program?
- Where should I send the application for the Early Retiree Reinsurance Program once it is completed?
- Can we only use reimbursements from the Early Retiree Reinsurance Program to offset retirees costs?
