Health care reform encourages employers to provide coverage to employees who retire early by offering reinsurance assistance. 

This temporary program encourages employers to provide early retirees (ages 55 to 64) with coverage before they qualify for Medicare. For those eligible, the federal government will reimburse employment-based plans for 80% of claims costs above $15,000 through 2013, with a cap at $90,000. 

Eligible retirees must be 55 years of age or older, not Medicare-eligible and not active employees. To participate in the program, groups must implement programs and procedures to generate cost-savings for individuals with chronic and high-cost conditions and provide documentation of the actual cost of medical claims involved. They must submit applications and be certified by the Department of Health and Human Services.

Employers should seek legal and/or accounting advice to determine if this provision could help them provide coverage to early retirees.  Our account management team can help you get the claims information you will need to file an application.  If you are a member, please contact your human resources department to find out if your company participates in this program.

• The White House on Early Retiree Reinsurance
• Bill Summary - Early Retiree Reinsurance
• HHS Website on Early Retiree Reinsurance (includes application).