Health Care Reform: Early Retiree Reinsurance Program to be Closed to New Applicants
The Patient Protection and Affordable Care Act (PPACA) established the Early Retiree Reinsurance Program (ERRP). The ERRP is a temporary program which provides reimbursement to eligible sponsors of employment-based plans for a portion of the cost of providing health coverage to early retirees and their families.
The ERRP has $5 billion in funds and is set to expire no later than January 1, 2014. To participate in the ERRP, plans must submit an application to the Department of Health and Human Services’ Center for Medicare & Medicaid Services.
Based on the amount of ERRP funding that has taken place to date and the rate at which funding is being reimbursed, the federal government announced last week that applications for the ERRP must be received by May 5, 2011. Applications received after May 5 will not be eligible for ERRP reimbursement.
MSEC encourages employers who provide health care coverage to retirees 55 years or older who are not yet eligible for Medicare to apply for ERRP participation. The application form is available on the ERRP website.