The U.S. Department of Health and Human Services has issued regulations establishing the Early Retiree Reinsurance Program in the Affordable Care Act. This temporary program will make it easier for employers to provide coverage to early retirees.

* The Affordable Care Act includes $5 billion in financial assistance to employers to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare.
* Employers can use the savings to either reduce their own health care costs, provide premium relief to their workers and families or a combination of both.
* The program will end in 2014, when retirees 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

Eligible employers can apply for the program through the U.S. Department of Health and Human Services. Applications will be available by the end of June.

A complete Fact Sheet about this new program is available by clicking here.

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