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May 05, 2010
Regulations for Early Retiree Coverage Program Established by Government
Regulations were established for a temporary program that will help employers provide coverage to early retirees. The U.S. Department of Health and Human Services (HHS) announced the Early Retiree Reinsurance Program will begin on June 1 of this year, before the June 21 start date required by the Affordable Care Act.

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The Affordable Care Act provides $5 billion in financial assistance to help organizations maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare.

"Self-funded and insured plans can apply, including plans sponsored by private entities, state and local governments, nonprofits, religious entities, unions, and other employers."

Accepted employers will receive reinsurance reimbursement for medical claims for retirees who qualify, and their spouses, surviving spouses, and dependents.

The program will end in 2014, when workers will be able to choose coverage options through the health insurance exchanges.

Eligible employers can apply for the program through HHS.

More information about the Healthcare Reform is available in BLR's Healthcare Reform Resource Center for Employers.


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