Stevenson Keppelman Associates held a seminar on June 28, 2010 on Health Care Reform. In our seminar, we told you about the Early Retiree Reinsurance Program. The U.S. Department of Health & Human Services (“HHS”) is now accepting applications for this program.

Official Application Available on HHS Website
For the official application and other helpful information (see list below), visit the HHS website: http://www.hhs.gov/ociio/regulations/index.html#early_retiree.

• Regulation
• Official ERRP Program Application (New)
• Official ERRP Application Instructions (New)
• Frequently Asked Questions (Updated)
• Application Submission Dos and Don’ts (Updated)
• Fact Sheet
• Presentation

Program Summary
For those of you not familiar with the Early Retiree Reinsurance Program, it was established as part of the Affordable Care Act. The program reimburses plan sponsors of participating employment-based plans for a portion of the cost of health benefits for early retirees (prior to Medicare eligibility) and their spouses, surviving spouses, and dependents. Plan sponsors may be reimbursed for 80% of certain claims between $15,000 and $90,000 (as indexed) while funding lasts.

Race to the Finish Line?
Congress appropriated funding of $5 billion for this temporary program, which became effective June 1, 2010, and ends no later than January 1, 2014. But some observers doubt the money will last that long. Accordingly, there has been a mad rush to be one of the first sponsors to submit an application. Based on some new HHS FAQs, it looks like plan sponsors may have more time to file an application. According to the FAQs, claims will be processed in the order in which the claims are received (vs. in the order in which the applications are submitted). Don’t wait too long though to file your application. HHS has the authority to stop accepting new applications if it appears that the $5 billion in federal funding is insufficient as claims are paid out.

Please contact us if you have any questions regarding the retiree reinsurance program. We would be happy to assist you.