HHS announces nearly 700 additional employers and unions to receive help providing health coverage to early retirees and their families

Nearly 3,600 employers and unions approved to participate in the Affordable Care Act's Early Retiree Reinsurance Program to date; applications still being accepted

The U.S. Department of Health and Human Services (HHS) today released a list of additional employers and unions accepted into the Affordable Care Act's Early Retiree Reinsurance Program. Nearly 700 additional large and small businesses, state and local governments, educational institutions, non-profit organizations, and unions have been accepted into the program, which reimburses employers for a portion of the cost of health benefits for early retirees' and their families. Today's announcement brings the total number of organizations participating in the program to nearly 3,600.

"By helping employers and unions continue to offer coverage for early retirees, we're helping them compete -- while providing a measure of certainty and security for their former workers at a time when it could not be more important," said Secretary Kathleen Sebelius. "The Early Retiree Reinsurance Program seeks to shore up the financial foothold for employers and unions who want to provide coverage to their retirees."

Created by the Affordable Care Act as another bridge to the new health insurance exchanges in 2014, the Early Retiree Reinsurance Program provides $5 billion in financial assistance to employers and unions, to help them maintain coverage for early retirees ages 55 and older who are not yet eligible for Medicare. Businesses and other employers and unions that are accepted into the program will receive reimbursement for a portion of the costs of health benefits for their early retirees and their spouses, surviving spouses, and dependents. Savings may be used to reduce employer or union health care costs, provide premium or out-of-pocket relief to workers, retirees, and their families, or both. The program ends on January 1, 2014, when the state-based health insurance exchanges will be up and running.

HHS' Office of Consumer Information and Insurance Oversight has approved nearly 3,600 employer and union plans, representing a broad range of employers and unions from all 50 states and the District of Columbia, for participation in the Early Retiree Reinsurance Program, with more applications being reviewed every day. HHS has set up a website, www.ERRP.gov, where sponsors can begin submitting information today to qualify early retirees, spouses, surviving spouses, and dependents for claims reimbursements.

Employers and unions interested in the Early Retiree Reinsurance Program should visit www.ERRP.gov or call 1-877-574-3777 or 877-574-ERRP. Employers and unions can find the application form and application instructions, as well as other relevant guidance and regulations from HHS, online.

More information about the Early Retiree Reinsurance Program, a full alphabetical list of participants, and an interactive map displaying participants by state is available online. This list is updated regularly. To find this information, please visit:
http://www.healthcare.gov/news/factsheets/early_retiree_reinsurance_program.html.

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Secretary Sebelius on New Benefits for Companies and Early Retirees in the Affordable Care Act

The U.S. Department of Health and Human Services today issued regulations establishing the Early Retiree Reinsurance Program in the Affordable Care Act. This temporary program will make it easier for employers to provide coverage to early retirees. You can find more information about this important new program at http://www.whitehouse.gov/the-press-office/fact-sheet-early-retiree-reinsurance-program.

Rising costs have made it hard for employers to provide quality, affordable health insurance for workers and retirees,” said Secretary Sebelius. “As a result, many Americans who retire before they are eligible for Medicare are worried about losing health insurance coverage through their former employers, putting them at risk of losing their life savings due to medical costs. This new program will provide much-needed relief so that employers can provide more retirees with quality, affordable insurance, starting this year.”

The percentage of large firms providing workers with retiree coverage has dropped from 66 percent in 1988 to 31 percent in 2008. The Affordable Care Act includes $5 billion in financial assistance to employers to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare. The program will end in 2014, when Americans will be able to choose from additional coverage options through the health insurance exchanges.

Eligible employers can apply for the program through the Department of Health and Human Services. Applications will be available by the end of June. Both self-funded and insured plans can apply, including plans sponsored by private entities, state and local governments, nonprofits, religious entities, unions, and other employers.

If you want to learn more about how this new benefit could affect you and your company or your family member who is considering early retirement, tune into the next Affordable Care Act web chat at healthreform.gov.

Secretary Sebelius and Department of Commerce Secretary Gary Locke will host a web chat on the new Early Retiree Reinsurance Program Wednesday, May 5, at 11:30 A.M. EDT at www.healthreform.gov

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