The new Patient Protection and Affordable Care Act (PPACA) set aside $5 billion to reimburse employers for the cost of early retirement insurance. Employees who retire between 55 and 64 are ineligible for Medicare and have a hard time getting health insurance on their own. Some employers choose to provide insurance to these early retirees. PPACA’s Early Retirement Reinsurance Program will reimburse employers for 80% of those costs. Employers must submit an estimate to the government on how much of the $5 billion they will require. The program is capped at $5 billion, and is run on a first come, first serve basis. The government predicts that the number (value) of requests will outnumber available funds, so employers should get their requests in as soon as possible.
Brody and Associates regularly advises management on complying and remaining up to date with state and federal employment laws. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.965.0565.
