HHS Releases Interim Final Regulations on Temporary Early Retiree Reinsurance Program

The Department of Health and Human Services (HHS) has released the first detailed guidance explaining the early retiree health benefit claim reinsurance program established under the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010 (the Healthcare Reform Law). The new interim final regulations outline the timing, requirements, transition rules, and claims submission processes necessary to obtain reinsurance for certain early retiree health benefit claims. However, a maintenance-of-effort requirement, the general structure of the program, and the "first-come, first-served" application and claims submission processes may make all but the largest employers, collectively bargained plans, and public plans think twice about choosing to participate.