What is the reinsurance program for early retirees that is available to employers?
The new law creates a temporary federal reinsurance program to provide financial assistance to employers who provide fully insured or self-funded health insurance coverage to retirees from age 55 to 65 who are not otherwise eligible for Medicare. The temporary program provides reimbursement for 80 percent of retiree health benefits costs that fall between $15,000 and $90,000 for plan years that start before October 1, 2011, regardless of whether the costs were paid by the benefit plan or by the early retiree. Payments received must be used to reduce the employer’s health benefit premiums or costs, to reduce the costs paid by participants, or both. Reimbursements will only be made as long as funds are available for the program, and will be paid on a first-come, first-served basis.
