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September 1, 2010

HRB 18 - Update: Early Retiree Reinsurance Program

Released September 1, 2010I Download as a PDF

September 1, 2010 --  The Early Retiree Reinsurance Program (ERRP), established as part of the PPACA, is a program designed to encourage employers to establish or maintain retiree health coverage for their retirees, aged 55 to Medicare entitlement.  The ERRP will pay the equivalent of up to 80% of an early retiree’s claim between $15,000 and $90,000.  To be eligible for the program, an application must be filed with HHS; the application process opened on June 29, 2010. 

For background information relating to ERRP, please refer to the prior CBIZ Health Reform Bulletins:

New ERRP Website and Hotline

HHS has recently unveiled a new secured website (www.ERRP.gov) for submitting and monitoring the status of ERRP applications.  Employers and plan sponsors who have submitted their ERRP application can use the secure website to view and change application information; submit their retiree list, costs, and claims; and request payment for a portion of the costs of health benefits for early retirees and their dependents.

In addition, plan sponsors and employers can contact HHS with questions about the ERRP by way of a new hotline number: 877-574-3777 or 877-574-ERRP.

List of ERRP Participating Employers

Also available from the HealthCare.gov website is a list employers and unions participating in the ERRP, by geographic location, and by alphabetical list.

 

About the Author:  Karen R. McLeese is Vice President of Employee Benefit Regulatory Affairs for CBIZ Benefits & Insurance Services, Inc., a division of CBIZ, Inc.  She serves as in-house counsel, with particular emphasis on monitoring and interpreting state and federal employee benefits law.  Ms. McLeese is based in the CBIZ Leawood, Kansas office.

 

The information contained herein is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. The information contained herein is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations.

This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.

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