Posts Tagged: ERRP

Use of ERRP Reimbursements

in Affordable Care Act

Today, HHS officially published the guidance requiring plan sponsors to use all ERRP reimbursements by December 31, 2014. http://www.gpo.gov/fdsys/pkg/FR-2012-03-21/pdf/2012-6728.pdf This notice did not change how the proceeds must be used, however. In general, ERRP requires a sponsor to use ERRP proceeds (1) to reduce the sponsor’s health benefit premiums or health benefit costs, (2) to reduce plan participants’ health benefit premium contributions, copayments, deductibles, coinsurance, or other out-of-pocket costs, or any combination of these costs, or (3) to reduce any combination of the costs specified in (1) and (2). ERRP proceeds may not be used as general revenue of the… Continue Reading

ERRP Funds Exhausted

in Affordable Care Act

Last Friday evening, HHS announced that the ERRP funds are fully exhausted.  Although the announcement leaves some questions as to reimbursement payments that are in process, we have heard informally that no more payments will be issued by HHS.     At the same time, HHS announced that ERRP reimbursements must be fully used by plan sponsors no later than December 31, 2014.   A copy of the press release is appended below.   http://errp.gov/newspages/2012/20120217-errp-end-of-funds.shtml

CMS Closes ERRP Program

in Retiree Benefits

This afternoon CMS announced that it will not accept claims for ERRP reimbursement, if the claim is incurred on January 1, 2012 or later. However, claims incurred before January 1, 2012 and paid on or after January 1, 2012 may be submitted after the claim is paid based on current ERRP guidelines. A portion of the CMS announcement is appended as follows: CMS is exercising our authority under 45 CFR 149.45(a) to deny certain reimbursement requests based on the available amount remaining of the $5 billion in appropriated program funding, and the rate at which it is being disbursed. We… Continue Reading

New ERRP Legislation Introduced

in Retiree Benefits

Senator John Kerry recently introduced legislation that would add an additional $5 Billion to ERRP. http://www.gpo.gov/fdsys/pkg/BILLS-112s1088is/pdf/BILLS-112s1088is.pdf Based on the current Congress, I think this has a real uphill climb.

ERRP Almost Half Depleted

in Retiree Benefits

CMS recently announced that the ERRP program has reimbursed $2.44 Billion through May 3, 2011.  A current listing of all the plan sponsors who have received reimbursements and the amounts are located in the CMS release appended below.  The maximum amount allocated for ERRP is $5 Billion. Early Retiree Reinsurance Program: Reimbursement Update, May 13, 2011