Washington, DC -- The U.S. Department of Health and Human Services announced that nearly 2,000 employers and unions nationwide, including 156 in New York State, joined the Early Retiree Reinsurance Program created by the Affordable Care Act – the landmark health reform bill passed earlier this year. 

Congressman Eliot Engel, who voted for the heath care plan, called the program a bridge to the new health insurance Exchanges slated to begin in 2014, and  provides $5 billion in financial assistance to employers and unions to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare.   

 The nearly 2,000 employers represent large and small businesses, state and local governments, educational institutions, non-profits, and unions. Starting in September, approved applicants can begin submitting claims dating back to June 1, 2010 and, starting in October, approved applicants will begin to receive reinsurance payments on those claims. This policy allows more health benefit claims to qualify for reinsurance payments for plans this year.

 The program ends on January 1, 2014 when State health insurance Exchanges are up and running.

            Rep. Engel said, “These are hard economic times, especially with medical costs still rising. Many Americans who retire before they are eligible for Medicare could see their life savings disappear because of medical bills and exorbitant rates for health insurance. The Affordable Care Act’s Early Retiree Reinsurance Program will make it easier for employers to provide high-quality health benefits to their retirees, as we work to put implement market reforms which will lower costs for all.”

Rising health care costs have made it difficult for employers to provide quality, affordable health insurance for workers and retirees, while trying to remain competitive in the global marketplace. The percentage of large firms providing workers with retiree health coverage has dropped from 66 percent in 1988 to 29 percent in 2009. Health insurance premiums for older Americans are over four times more expensive than they are for young adultsand the deductible these enrollees pay is, on average, almost four times that for a typical employer-sponsored insurance plan.

The applications represent nearly every sector of the economy: 32 percent of applications came from businesses, 26 percent from State and local governments, 22 percent from union sponsors, 14 percent from schools and other educational institutions, and 5 percent from non profits.

            Among the organizations in New York State in the program are:

• 1199 SEIU National Benefit Fund For Health and Human Services
• Associated Press
• Bricklayers and Allied Craftworkers Local 5 NY Welfare Fund
• CBS Corporation
• Central Hudson Gas & Electric Corporation
• Civil Service Employees Association, Inc.
• Colgate University
• County of Westchester
• Davis Polk & Wardwell LLP
• Dow Jones & Company
• Eastman Kodak Company
• Excellus Health Plan, Inc
• International Business Machines Corporation
• New York City Transit Authority
• New York Times Company
• New York-Presbyterian Hospital
• Ossining Union Free School District
• Pfizer Inc.
• Putnam/Northern Westchester Health Benefits Consortium
• State of New York
• Town/Village of Harrison

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