HHS Issues Guidance on Early Retiree Reinsurance Program

The Department of Health and Human Services has issued guidance and a draft application for the Early Retiree Reinsurance Program.

About the program:

The Congress appropriated funding of $5 billion for the temporary program, which is effective June 1, 2010, under interim final rules published by the Department on May 4, 2010. The program ends no later than January 1, 2014. The program provides reimbursement to participating employment-based plans for a portion of the cost of health benefits for early retirees and their spouses, surviving spouses and dependents. The Secretary will reimburse plans for certain claims between $15,000 and $90,000 (with those amounts being indexed for plan years starting on or after October 1, 2011). The purpose of the reimbursement is to make health benefits more affordable for plan participants and sponsors so that health benefits are accessible to more Americans than they would otherwise be without this program.

In addition to the regulation and information about the program, HHS has released a Draft Application to participate in the Early Retiree Reinsurance Program as well as instructions for completing the Application and frequently asked questions related to the application process. The Official Application, with the address to which it should be submitted, will be posted later in June. As directed in the Early Retiree Reinsurance interim final rule, (see ERRP regulation at 45 C.F.R. §149.40), a plan sponsor interested in applying for the program must submit one application per plan, and identify the plan year cycle for which the sponsor is applying. Applications will begin being accepted no later than June 30, 2010.

To access the links for the guidance and applications documents click here: http://www.hhs.gov/ociio/regulations/index.html