Early Retiree Reinsurance Program

The program provides reimbursement to sponsors of participating employment-based plans for a portion of the cost of health benefits for early retirees and their spouses, surviving spouses, and dependents. The purpose of the reimbursement is to make health benefits more affordable for plan participants and sponsors so that health benefits are accessible to more Americans than they would otherwise be without this program.

In order to have been eligible for the ERRP, a plan sponsor must have completed and submitted an ERRP application to the ERRP Center on or before May 5, 2011. In summary, the plan sponsor must be an organization that provides health benefits to Early Retirees, have programs and procedures in place that generate cost savings with respect to participants with chronic and high-cost conditions, use reimbursements appropriately, ensure that policies and procedures are in place to protect against fraud, waste and abuse under ERRP, and agree to the Plan Sponsor Agreement included in the ERRP application. Applications were reviewed and either approved or not approved for acceptance in to the program

In order to be eligible to receive reimbursements under the ERRP, a plan sponsor must have completed and submitted an ERRP application to the ERRP Center on or before May 5, 2011. If approved, both the sponsor, and early retirees and their spouses, surviving spouses and their dependents are direct or indirect beneficiaries of the program. In summary, the sponsor must be an organization that provides health benefits to Early Retirees, have programs and procedures in place that generate (or have the potential to generate) cost savings with respect to participants with chronic and high-cost conditions, use reimbursements appropriately, ensure that policies and procedures are in place to protect against fraud, waste and abuse under ERRP, and agree to the Plan Sponsor Agreement included in the ERRP application.

A sponsor must have submitted an application for the program to the ERRP Center on or before May 5, 2011. After approval into the program, in order to receive program funds a sponsor must provide the ERRP Center with a list of the Early Retirees and the cost and claims data for which it is requesting in reimbursement. This program is excluded from coverage under OMB Circular No. A-87.

ERRP regulation specifies the only permissible ways in which sponsors may use the proceeds under this program. They permissible ways are: (1) To reduce the sponsor's health benefit premiums or health benefit costs, or (2) To reduce health benefit premium contributions, copayments, deductibles, coinsurance, or other out-of-pocket costs, or any combination of these costs, for plan participants, or (3) To reduce any combination of the costs in (1) and (2). In addition, there is an additional restriction that proceeds under this program must not be used as general revenue for the sponsor. (See the ERRP regulation at 45 C.F.R. §149.200).

The reimbursement will be available until January 01, 2014. ERRP reimbursement may no longer be requested.

Sponsors must have completed and submitted an application to the ERRP Center on or before May 5, 2011. Reimbursement requests are no longer being accepted. The program ended January 1, 2014.

The ERRP ended January 1, 2014. Administrative activities to close out systems and operations are underway. On May 05, 2011, the program ceased accepting applications from sponsors.

Applications were generally processed within 2 weeks of receipt. Applications and reimbursement requests are no longer being accepted. The program ended January 1, 2014.

Sponsors may appeal an adverse reimbursement determination. .