CMS Announces Closing of Early Retiree Reinsurance Program Effective After May 5, 2011
2011-04/04 Mary Ellen Schill                                                              Printer Friendly PDF Version

The Center for Medicare and Medicaid Services (CMS) announced March 31st that due to the overwhelming response, the early retiree reinsurance program will be closed to new applicants after May 5, 2011.  For information concerning the ERRP, please see our earlier newsletter on the topic entitled “Health Care Reform Offers Group Health Plan Sponsors Financial Assistance - Program Opens June 21, 2010.”  ERRP allows employers that sponsor group health plans to seek reimbursement for certain health care expenses incurred by former employees age 55 and older (and their spouses and dependents regardless of age).  ERRP was limited to $5 billion in reimbursements, and CMS projects that approved applications received through May 5, 2011 will exhaust this amount.

Ruder Ware has assisted employers in applying for the ERRP program.  Since applications are processed in the order received, an employer considering applying for the program should do so as soon as possible.  Please feel free to e-mail Mary Ellen Schill, the author of this e-alert, or contact her by telephone at (715) 845-4336.

© 2011 Ruder Ware, L.L.S.C. Accurate reproduction with acknowledgment granted. All rights reserved.
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