Health and Human Services See ERRP Ending in 2012

Thus far the Early Retiree Reinsurance Program has been a huge success helping plan sponsors offset the rising costs of retiree health care. The Department of Health and Health Services said on February 14th that it expects to distribute about $3.6 billion in reimbursements during fiscal 2011 year to employers and other sponsors of early retiree health care plans. With the federal fiscal year running from Oct. 1 through Sept. 30, the remaining $1.4 billion of the $5 billion fund authorized under last year’s health care reform law would be distributed during fiscal 2012. These however are estimates of what HHS plans to distribute, when the $5 billion runs out the Early Retiree Reinsurance Program will official end.

So far more than 5,000 plan sponsors had been approved to participate in the Early Retiree Reinsurance Program and about $1 billion has already been distributed this fiscal year by Health and Human Services.

RDS Services, a leader in subsidy recovery, will be sure to keep you updated with all the events that affect the Early Retiree Reinsurance Program. If you have any questions pertaining to ERRP or RDS Services , feel free to contact us.

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