Health care is all the rage these days. Keeping health care coverage affordable and accessible for aging employees is a constant concern for any employer – especially in the face of rising costs across the board. As part of President Obama’s health care reform efforts, the $5 billion Early Retiree Reinsurance Program was established to help cover costs for individuals who leave the workforce between the ages of 55 and 64, according to Bloomberg.

Health and Human Services Secretary Kathleen Sebelius is quoted: “In these tough economic times, it is difficult for employers to keep up with the skyrocketing health care costs for employees and retirees. The Affordable Care Act’s Early Retiree Reinsurance Program will make it a little easier for employers to provide high-quality health benefits to their retirees as we work to put in place market reforms to lower costs for all.” The program will cover 80 percent of health costs for retiree claims ranging from $15,000 to $90,000.

To date, 2000 organizations, ranging from large businesses to local governments, have been selected in the first round of applicants to take advantage of the program, scheduled to last until January 1, 2014. Critics of the Early Retiree Reinsurance Program see it as grossly underfunded, and likely to run out two years before the announced end date. For now, the program will accept applications until funds actually do run out, and there is no limit as to the number of employees a company may apply for.

Related Resources:

  • New Resources for Employers and Unions to Help Keep Health Coverage Accessible and Affordable (White House Blog)
  • Getting Your Retirement Money Early – Without Penalty (FindLaw)
  • Social Security: The Retirement Program Turns 75 (FindLaw’s Law and Daily Life)
  • Is Your Prescription Pill the Right Stuff (provided by Lancione & Lancione, PLL)

You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help

Civil Rights

Block on Trump’s Asylum Ban Upheld by Supreme Court

Criminal

Judges Can Release Secret Grand Jury Records

Politicians Can’t Block Voters on Facebook, Court Rules