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HCR Update: Early Retiree Program Accepting Applications

Jul 02, 2010

Health Care Reform Update

July 2, 2010

Early Retiree Reinsurance Program application now available

As many of you know, the health care legislation enacted by Congress and signed into law by President Barack Obama on March 23, 2010, requires the U.S. Department of Health and Human Services (HHS) to establish an early retiree reinsurance program (ERRP), which must be operational within 90 days after enactment.


Recently, HHS released interim final rules relating to the Early Retiree Reinsurance Program and called for a 30-day public comment. This week, HHS published the official ERRP application, official application instructions and application submission "dos and don'ts" (including the address for submitting an application). All of these documents may be accessed through the following link:  


In general, the program provides $5 billion in financial assistance to employers to offset a portion of the costs of providing health coverage for early retirees, ages 55-64, who are not yet eligible for Medicare and their spouses, surviving spouses and dependents.


The interim final rule was effective on June 1, 2010. Applications are expected to be accepted and processed by HHS on a first-come, first-served basis. The program will end on January 1, 2014, or when the $5 billion Congress allocated through the legislation is exhausted.


If you need more information or assistance in applying, please contact your account representative.


Did you know?


How much the United States spends on health care?


According to the Centers for Medicare and Medicaid  Services Office of the Actuary, spending on health care reached $2.2 trillion in 2007. National health care spending has been predicted to reach $2.6 trillion by 2010 and could exceed $4 trillion by 2018. Health care costs and premiums go hand-in-hand. If costs go up, so do your premiums.

This content is provided solely for informational purposes: it is not intended as and does not constitute legal advice. The information contained herein should not be relied upon or used as a substitute for consultation with legal, accounting, tax and/or other professional advisors.

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