The federal government is retiring its reinsurance funding program for early retirees, effective May 5. The $5 billion Early Retiree Reinsurance Program, part of the Patient Protection and Affordable Care Act, offers a subsidy to employers to help offset medical costs of retirees between ages 55 and 64, their spouses and dependents.
Late News: Early retiree subsidy program for employers is ending
The program has paid out nearly $1.8 billion to more than 1,300 employers in all 50 states, according to a report by the CMS. It is scheduled to sunset no later than January 2014. Based on spending trends, the CMS said it would no longer accept new employer applicants after May 5. The program began disbursing payments to plan sponsors last October for claims incurred after June 1, 2010. Among the largest beneficiaries so far have been AT&T, which has received $140 million to support health benefits to early retirees, and the United Auto Workers Retiree Medical Benefits Trust, with $206.8 million.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.