HHS Releases Interim Final Rule On Early Retiree Reinsurance Program

On May 3, 2010, the Secretary of the Department of Health and Human Services (HHS) released an interim final rule with a 30-day public comment period that implements the Early Retiree Reinsurance Program established by the Affordable Care Act (the "Act").¹ The interim final rule will become effective on June 1, 2010.

The Act required that HHS establish this temporary program no later than June 21, 2010 to provide reimbursement to participating employment-based plans (which includes multiemployer plans and both insured and self-funded plans) for a portion of the cost of providing health benefits for retirees ages 55 to 64 and their spouses, surviving spouses, and dependents. For each such early retiree (and his or her spouse, surviving spouse, and dependents), the employer-based plan will receive up to 80 percent of costs, minus negotiated price concessions, for certain health benefit claims between $15,000 and $90,000 (these amounts will be indexed for plan years