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Human Resources, Risk Management Division, recommending the Board:
1) Approve the County’s participation in the Federal Department of Health and Human Services Early Retiree Reinsurance Program; and
2) Authorize the Human Resources Director, or Principal Risk Management Analyst, to sign necessary applications and agreements to participate in the program.
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Background & Reason for Recommendation:
The heath care reform law enacted March 2010 included a subsidy for employers to encourage them to provide, or continue providing, early retiree health plan coverage. The Early Retiree Reinsurance Program (ERRP) will pay reimbursement to employers to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare.
The amount of reimbursement available is up to 80% of claims costs for early retiree health benefits between $ 15,000 and $90,000. Total funding for the program is $5 billion nationwide. Reimbursements will be made on a first-come, first-served basis, and submittal of an application does not guarantee funding. Claims incurred after June 1, 2010 are eligible for reimbursement, and the program ends when the $ 5 Billion funding is exhausted or on January 1, 2014, whichever is later.
Reimbursements must be used to reduce the County's and/or employee's costs related to the plan, such as covering increases in premiums or other health benefits costs, or reducing the employee’s premium contribution, co-payments, deductibles, co-insurance, or other out-of-pocket costs.
This is an opportunity to possibly receive reimbursement for claims incurred and to reduce associated costs to the County and/or to the early retiree. Our health care providers have stated they do not plan to charge a specific fee for providing claims data to HHS on behalf of El Dorado County.
Action to be taken following Board approval:
Following Board approval, Human Resources, Risk Management Division will sign applications and agreement ...
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