Beginning this month, employers can tap into federal money to help pay for early retiree health insurance coverage.
In May, President Obama announced he will set aside $5 billion for a temporary Early Retiree Reinsurance Program as part of the Patient Protection and Affordable Care Act. The program will help companies maintain health coverage for retirees age 55 and older, who are not yet eligible for Medicare.
Eligible employers can apply for the program through the Department of Health and Human Services.
Under the program, the federal government can reimburse employers for 80 percent of the cost of claims from $15,000 to $90,000 a year for a retired worker who is 55 or older and not eligible for Medicare.The program will end in 2014, when Americans will be able to choose from additional coverage options through the health insurance exchanges.
Both self-funded and insured plans can apply, including plans sponsored by private entities, state and local governments, nonprofits, religious entities, unions, and other employers.
