<nobr>May 4, 2010</nobr>

HHS Releases Interim Final Rule on PPACA Early Retiree Reinsurance Program

The Department of Health and Human Services on May 5 published in the Federal Register an interim final rule on the Early Retiree Reinsurance Program, a $5 billion fund created under the Patient Protection and Affordable Care Act (PPACA).

This temporary reinsurance program will reimburse 80% of claims between $15,000 and $90,000 for employer-sponsored retiree coverage of individuals 55 to 64 years old who are not active workers or eligible for Medicare. The regulations are effective June 1, 2010, and the program will sunset on January 1, 2014.

The 81-page regulation describes in detail how the program will work, which claims will be covered (i.e., when the claims must be incurred and paid), how the reimbursement money must be used, which cost containment programs must be implemented in order to gain reimbursement, and how reimbursements must be allocated, among other things.

HHS said it would accept comments on the regulation until 5:00pm (EST) June 4, 2010.

If you have questions or comments on the regulation, contact Gretchen Young, gyoung@eric.org, or Adam Solander, asolander@eric.org.

Websites:

HHS Interim Final Rule

White House Fact Sheet

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