RSS icon

Top Stories

Survey Set for Employers on How They Used Early Retiree Reimbursement Funds

Under the $5 billion Early Retiree Reinsurance Program set up as part of the health care reform law, approved plan sponsors have received partial reimbursement of claims they have paid.

November 16, 2011
Related Topics: Health Care Reform, Health Care Costs, Retiree Health Care, Latest News
Reprints

The Centers for Medicare & Medicaid Services says it intends to survey employers and other early retiree health care plan sponsors on how they used money provided under a federal program.

Under the $5 billion Early Retiree Reinsurance Program set up as part of the health care reform law, approved plan sponsors have received partial reimbursement of claims they have paid.

That survey, the CMS explained in a notice published in Wednesday's Federal Register, is required under the Patient Protection and Affordable Care Act, which requires the secretary of the Department of Health and Human Services to develop a mechanism "to monitor the appropriate use of the funds."

In general, the reimbursement must be used to reduce employers' and/or retirees' health care costs.

Through Oct. 14, more than $3.6 billion of the $5 billion program had been distributed, according to a Nov. 4 CMS report.

Under the ERRP, the government reimburses employers and other early retiree health care plan sponsors for a portion of medical claims filed after June 1, 2010, by retirees and their covered dependents, as long as the retiree is at least 55 years old and not eligible for Medicare.

The program pays 80% of medical costs up to $90,000 per year, once a participant has incurred $15,000 in claims.

The government, anticipating exhaustion of the program's funds, stopped accepting new applications to participate in the program in early May.

Jerry Geisel writes for Business Insurance, a sister publication of Workforce Management. To comment, email editors@workforce.com.

Stay informed and connected. Get human resources news and HR features via Workforce Management's Twitter feed or RSS feeds for mobile devices and news readers.

Recent Articles by Jerry Geisel

Comments powered by Disqus

Hr Jobs

Loading
View All Job Listings