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Compliance April 13, 2010
Forms Ready in June for Employers to Claim Reimbursement of Retiree Health Claims
April 12, 2010 (PLANSPONSOR.com) - The Department of Health and Human Services says application forms will be ready in June for a new, temporary federal program, in which the government will partially repay employers for a portion of their retiree health care claims.
Reported by Rebecca Moore
Business Insurance reports that under the program, authorized as part of the recently passed health care reform measure, Congress has allocated $5 billion to reimburse employers with health care plans covering early retirees, defined as those between ages 55 and 64. The government will reimburse employers 80% of each claim between $15,000 and $90,000.
In its fact sheet, HHS says medical, surgical, hospital and prescription costs are eligible for tax-free reimbursement, according to Business Insurance.
Employers that receive the payments are required to use the proceeds to lower early retirees’ health care costs, such as by reducing premium contributions, copayments, or deductibles.
The program will begin June 23 of this year and end January 1, 2014.
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