General Information

ERRP Funding Spent, Program to Close

The Affordable Care Act (ACA) established the Early Retiree Reinsurance Program (ERRP) to help cover the health costs for retirees older than age 55 who do not yet qualify for Medicare. ERRP is also designed to help prevent employers from discontinuing retiree health coverage before ACA provisions that prohibit insurers from denying coverage based on pre-existing conditions become effective in 2014. The Centers for Medicare & Medicaid Services reported last week that $4.5 billion of the $5 billion allocated by ACA has been spent, and the agency will stop taking claims for expenses incurred after Dec. 31, 2011. ACA authorized ERRP until 2014 or until funds were depleted. Contact: Anne McLeod, (916) 552-7536,