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Early Retiree Reinsurance Program Unveiled
On May 4, 2010, the United States Department of Health & Human Services (“HHS”) issued interim final rules implementing the Early Retiree Reinsurance Program. The Program provides subsidies to employers who provide health insurance to early retirees that can be used to lower health insurance costs for the employer and plan participants. There are limited funds available under the Program and funds are available on a first come first serve basis. The Program starts June 1, 2010. Employers who provide health insurance to early retirees, their spouses and dependents should prepare to apply for participation in the Program on June 1.
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