Brownstein Benefits Client Alert, June 10, 2010
The Early Retiree Reinsurance Program is a temporary program established under section 1102 of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010,1 to provide financial incentives to sponsors of “employment-based plans” to continue providing health coverage to certain early retirees. Under the program, the Secretary of the U.S. Department of Health and Human Services (“HHS”) will reimburse eligible plan sponsors for 80% of the plan’s early retiree health benefit claims between $15,000 and $90,000 (indexed for plan years beginning on or after October 1, 2011). This program will end on the earlier of the exhaustion of the $5 billion in funding or January 1, 2014.
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