Washington, DC - Congressman John D. Dingell (D-MI15) has prepared the following letter for constituents on the start of the Early Retiree Reinsurance Program, which will provide eligible employers $5 billion in financial assistance to help cover health insurance for early retirees, age 55 and older.

Dear Friend,

As too many of you already know, the rising cost of health care has made it hard for employers to provide quality and affordable health insurance to their retirees.  In 1988, 66 percent of large firms provided health coverage to their retirees. By 2008, just 20 years later, only 31 percent provided this coverage. This trend creates a difficult burden for people who retire, but have not turned 65 and become eligible for Medicare.  While the new health insurance reform law will provide early retirees with options in the health insurance exchanges in 2014, that doesn’t help those retirees looking for relief now.

That is why I was pleased that the White House announced today, the Early Retiree Reinsurance Program will be up and running ahead of schedule.  Starting on June 1, eligible employers can apply for assistance from this program designed to serve as a bridge to the start-up of the health insurance exchanges in 2014.

This new program provides $5 billion in financial assistance to employers to help them maintain coverage for retirees age 55 and older who are not yet eligible for Medicare. Health benefits that qualify for relief include medical, surgical, hospital, prescription drug, mental health services, and others. To receive assistance, plans must have their applications approved by the Department of Health and Human Services, document claims, and implement programs and procedures that have or have the potential to generate cost savings for participants with chronic and high-cost conditions. Employers must use the funds to either reduce their health care costs, provide premium or cost-sharing relief to their workers and families or a combination of both. The funds cannot be used for the employers’ general revenue.

In addition to the Early Retiree Program, the Affordable Care Act also helps early retirees by:
 

• Eliminating discrimination for pre-existing conditions, health status and age;
• Eliminating the lifetime and annual limits on how much insurance companies cover if beneficiaries get sick; and
• Creating a cap on out-of-pocket expenses, such as co-payments and deductibles.

As always, if you have any questions about this provision or any other in the Affordable Care Act, please contact my office.

Sincerely,

                                    With every good wish,

                                    John Dingell
                                    Member of Congress