HHS OKs First 2,000 Recipients in $5 Billion Early-Retiree Health Insurance Program

[tpsbmam]

(too old for LBN)

September 02, 2010

http://insurancenewsnet.com/article.aspx?id=222795

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"We have received applications from more than 50% of Fortune 500 companies, all major unions, and government entities in all 50 states and the District of Columbia," said HHS Secretary Kathleen Sebelius, in a statement. The nearly 2,000 plans already approved represent just a segment of applications, according to HHS.

The program is meant as a bridge until 2014, when state-based health insurance exchanges will be operating, but it's designed as a one-shot deal that will end when its money runs dry. Experts have guessed that could happen pretty quickly. Joel Michaels, the partner in charge of the health industry advisory practice at McDermott Will & Emery, had pointed out the program is "first-come, first-served. ... If you haven't gotten in line in time, you'll be out of luck." Michaels had also said that insurers have been permitted to submit claims on behalf of participating plan sponsors (BestWire, May 6, 2010).

A May survey by Hewitt Associates had shown that of employers who offer health coverage to pre-Medicare retirees, 76% planned to apply to get the program to potentially pay for some of it (BestWire, May 26, 2010).

However, the pool of eligible companies is less now than it has been in the past. According to HHS, the number of pre-Medicare retirees provided with coverage by large firms declined from 66% in 1988 to 29% in 2009.