Friday, June 11, 2010

How Far Does $5 Billion Go? Not Very If It's ERRP

A recent report from the Employee Benefit Research Institute (EBRI) asserts that the $5 billion appropriated for the newly created early retiree reinsurance program (ERRP) will run dry within the first two years of its initiation.

The recently passed health reform package, The Patient Protection and Affordable Care Act (PPACA), created ERRP with the aim of providing temporary reinsurance for sponsors of employer-sponsored health plans that provide retiree health benefits to retirees 55-64 years old. ERRP becomes effective June 1, 2010 and the subsidy will be available until Jan. 1, 2014 when state-based health insurance exchanges are expected to be established or whenever the funds are exhausted.

Click here to read the entire brief from EBRI.

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