The U.S. Dept. of Health and Human Services has issued a fact sheet and Frequently Asked Questions on the Early Retiree Reinsurance Program established by the federal health reform legislation.
The program provides reimbursement to participating employment-based plans for a portion of the cost of health benefits for early retirees and their spouses, surviving spouses and dependents. Congress appropriated funding of $5 billion for the temporary program, which is effective June 1, 2010, and is to end no later than January 1, 2014.
The DHHS Secretary will reimburse plans for certain claims between $15,000 and $90,000 (with those amounts being indexed for plan years starting on or after October 1, 2011). The purpose of the reimbursement is to make health benefits more affordable for plan participants and sponsors so that health benefits are more accessible. DSSH has also published a draft application form and application instructions.
