$5B Early Retirement Program Gets Early Start

The Early Retirement Reinsurance Program, which provides $5 billion to help companies maintain health care coverage for retirees 55 and older who are not yet eligible for Medicare, will be launched June 1, three weeks before the start date required by the Patient Protection and Affordable Care Act.

Starting the program ahead of the June 21 start date envisioned in the PPACA, signed into law March 23, will allow more claims to qualify for reinsurance payments this year, according to the White House.

In fact, numerous details about the early retiree program — and health care reform generally — have yet to coalesce, noted Samuel S. Choy, a partner and employee benefits lawyer with McKenna Long & Aldridge LLP.

There's likely going to be a race for the funds available under the program, and employers who want to get a share should be ready to take action as soon as HHS starts furnishing the applications, according to Choy.

"I suspect it will be first come, first paid," Choy said.

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