Podcast Center
Video Center
Webcasts
Resource Center
Events
March 02, 2011 at 07:00 PM
Early Retiree Reinsurance Program (ERRP) figures show that the number of early retirees with annual covered costs over $15,000 is much higher for some large plan sponsors than for others.
The U.S. Department of Health and Human Services (HHS) included costly early retiree figures in a report on ERRP implementation and operations.
Section 1102 of the Patient Protection and Affordable Care Act (PPACA), part of the Affordable Care Act package, created the ERRP to provide $5 billion in subsidies for employers that offer health benefits to early retirees ages 55 and older who are not eligible for Medicare and for those early retirees’ dependents.
The unions and employers that participate in ERRP must have programs for handling plan participants with chronic and high-cost conditions, HHS officials say.
ERRP provides reimbursement for 80% of an individual’s actual health expenses between a $15,000 cost threshold and a $90,000 cost ceiling. Plans can use the cash to reduce the sponsors’ costs, the participants’ costs or both.
