Early Retiree Reinsurance Program

This regulation was adopted to offset the inadequate employer insurance coverage of employees in the early retiree age group (and their eligible spouses, surviving spouses and dependents of the retirees). Five billion dollars ($5,000,000,000) of federal funding was set aside for this temporary reinsurance program to help cover a portion of the insurance costs to participating employers that provide employment-based health insurance to employees in this retiree group. Reimbursement is available for claims between $15,000 and $90,000 (the amounts are “indexed for plan years starting on or after October 1, 2011”). Funds are awarded on a first come, first served basis, and nearly 3,000 employers and other sponsors have already been approved for participation. This program began no later than 90 days after the enactment of the statute, which was June 21, 2010 and will end by January 1, 2014. Additional information regarding this provision is available at: http://www.errp.gov/

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