CMS Announces Closing of Early Retiree Reinsurance Program Effective After May 5, 2011
By Mary Ellen Schill
April 4, 2011
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. 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 contact Mary Ellen Schill, the author of this article, or any of the attorneys in the Employment, Benefits & Labor Relations Practice Group of Ruder Ware.
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