Early Retiree Reinsurance Program (ERRP)

Applies to grandfathered and non-grandfathered plans

Requirement overview

• Employers that offer coverage for early retirees can apply to receive money back from the government for medical claims for early retirees who aren't Medicare-eligible (age 55 to 64) and their spouses, surviving spouses and dependents.
• To be eligible, employers must have or plan to implement programs and procedures to help plan participants with chronic or high-cost conditions save money.
• Employers must use the money to reduce health care costs, lower participants' premium contributions/copays/deductibles or both.
• Program runs from 6/1/2010 to 1/1/2014, but may end sooner when the program reaches its cap of $5 billion.
• HHS announced the first 2000 employers approved to participate in the program. Read more.

What Priority Health is doing

• We've notified eligible employers. Read the program introduction letter we sent in late May 2010. (202KB PDF)
• We've provided information to help with the application process:
• Claims reimbursement projection numbers
• Our fraud, abuse and waste policies and procedures
• Programs that manage chronic or high cost conditions
• We will be able to send claim files for our approved employers to HHS for reimbursement.

What you need to do

Eligible employers must:

• Submit an Early Retiree Reinsurance Program application to HHS. Get the program application at the HHS website.
• Sign an agreement with Priority Health to allow us to submit reimbursement requests on their behalf.
• Contact your sales representative or independent agent with questions.