ERRP FAQ

What is the Early Retiree Reinsurance Program?

A Government funded program that provides reimbursement to sponsors of participating employment-based plans for a portion of the cost of health benefits for early retirees over the age of 55 and their spouses, surviving spouses, and dependents. Claims must exceed $15,000 for a covered member before reimbursement is available.

Why does this program exist?

This reimbursement program was created as part of the patient protection and affordable care act which became law on March 23, 2010. The purpose of the reimbursement is to make health benefits more affordable for plan participants and sponsors so that health benefits continue to be accessible to more Americans than they would otherwise be without this program.

What industry groups have the greatest subsidy opportunity?

• Municipalities
• Religious organizations
• Taft-Hartley plans
• Schools and Universities
• Any Privet Employers with retiree healthcare obligations

Who is covered in this program?

Five billion dollars has been provided to cover all early retirees ages 55 and up who are not yet eligible for Medicare. This program also covers the retirees spouse and dependents.

Is it true this is a temporary program?

Yes the program is intended to last until 2014 when the healthcare reform bill fully takes effect. Or when the appropriated funds are exhausted.

Why would your organization use RDS Services for the ERRP Program?

• Manage the Application Process
• Develop necessary two year projections
• Coordinate data with all vendors
• Maintaining up to date retiree lists
• Management of all the data necessary for submission
• Troubleshoot data submission issues
• Ensure Policies and Procedures are in place to detect fraud and abuse
• Track status of participants and monitor retiree plan changes
• Massive reduction of in house work and staff time
• Audit data for excluded claims

What about Record Keeping?

Section 149.350 of regulations requires that the plan sponsor will maintain records and produce documentation and data upon request of the Secretary. We will maintain and provide all information in the event of a HHS Audit.

What about Data Management?

The majority of vendors do not provide the proper data formatting required by HHS for submission. RDS Services has the ability to aggregate your vendor’s data and create the reports necessary to submit to HHS in order for you to submit claims reimbursement under this program.