Early Retiree Reinsurance Program to stop accepting applications
The Early Retiree Reinsurance Program (ERRP), created by last year’s federal health care reform law, will no longer accept new applications after May 5, 2011 (76 Fed Reg 65, April 5, 2011). Under the program, the federal government has made available $5 billion to reimburse early retiree medical plans for up to 80 percent of claims between $15,000 and $90,000. Based on the rate at which the available funding is being disbursed, the Centers for Medicare and Medicaid Services (CMS) has determined that the existing number of approved applications will exhaust program funding. If circumstances related to the availability of funding change, CMS may resume accepting applications in the future. For now, however, any further employer applications to the ERRP must be received at the program’s intake center on or before May 5, 2011. A May 5 postmark will not be sufficient. For more information, check out the ERRP website.