Early Retiree Reinsurance Program

May 19, 2010 at 9:26 am | Posted in Uncategorized | Leave a comment

An important stipulation of the Healthcare Reform legislation includes a temporary plan providing “reinsurance” for health plans that cover early retirees. These plans have a chance to obtain compensation for medical expenses for qualified retirees and their dependents. The new temporary Early Retiree Reinsurance Program is to be ready as early as June 23 and will last until the $5 billion dollar fund is exhausted (or, if earlier, December 31, 2013). It is expected that the full $5 billion will be exhausted in a short period, likely in the first year of the act.

Requirements for Participation/Reimbursement:

·       Must Be An Employment-Based Plan

·       Plans Must Apply For The Early Retirement Reinsurance Reimbursement

·       Plans Must Also Implement Certain Procedures And Provide Certain Documents

·       Submission Of Claims For Reimbursement

·       Payments Made To The Plan, Not The Plan Sponsor

·       Safeguards To Ensure Proper Use Of Reimbursement Payments

·       Appropriation

Early Retiree Reinsurance Summary

Comprehensive Summary of the New Healthcare Reform

May 17, 2010 at 3:15 pm | Posted in Uncategorized | Leave a comment

On March 21, 2010 the House of Representatives approved the Patient Protection and Affordable Care Act, also known as the Senate Bill.  Additionally, the House passed the Health Care and Education Reconciliation Bill of 2010.

Uninsured citizens that do not enroll will face a penalty under the new regulation beginning in 2014.  The individual penalty for failure to purchase insurance would start at $95 or 1.0% of income, or whichever is greater, and rise to $695 or 2.5% of income, by 2016; families would have to pay a maximum of $2,085.  The bill intends to create “Exchanges” that people can go to purchase insurance from private insurers.  There was not a “Public Option” included in the bill, however a “Multi-State Option” was passed.  Many citizens will receive aid from the government through tax credits, intended to cover the majority of premiums.  Moreover, the bill will generate revenue via a payroll tax on Medicare and high cost plans.

Insurers will face new stipulations that will affect employer group plans.  The bill removes the pre-existing conditions.  Also, the bill forbids the canceling coverage for those who have already enrolled.

Other provisions in the bill include: employer mandates, an increase to age 26 for dependents, a small business/employer credit, vouchers and revenue generating provisions.

 Comprehensive Summary of Healthcare Reform

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