City of Santa Barbara, Santa Barbara Community College District and Santa Barbara County Schools Among First Selected

SANTA BARBARA, CA – Today, Congresswoman Lois Capps announced the first round of employers to benefit from the new Early Retiree Reinsurance Program include City of Santa Barbara, Santa Barbara Community College District and Santa Barbara County Schools. The Early Retiree Reinsurance Program provides $5 billion in financial assistance to employers to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare. Nearly 2,000 employers have been accepted into the program and will begin to receive reimbursements for employee health care claims this fall.

“I couldn’t be more pleased that Santa Barbara residents will be among the first to benefit from the Early Retiree Reinsurance Program thanks to the new health reform law,” said Capps. “This financial assistance to employers will allow them to maintain health coverage for their retirees who have spent years working in our community and will remove the frightening uncertainty about health coverage that many retirees would otherwise face.”

Rising health care costs have made it increasingly difficult for employers to provide affordable health insurance to workers and retirees. Businesses and other employers and unions that are accepted into the Early Retiree Reinsurance Program will receive reimbursement for medical claims for early retirees and their spouses, surviving spouses, and dependents. Savings can be used to reduce employer health care costs, provide premium relief to workers and families, or both. The program ends on January 1, 2014 when State health insurance Exchanges are up and running.

For more information about the Early Retiree Reinsurance Program and an interactive map displaying the employers that have been accepted into the Early Retiree Reinsurance Program please visit: http://www.healthcare.gov/news/factsheets/early_retiree_reinsurance_program.h

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