Minnesota – Early Retiree Reinsurance Program
Rising health care costs have made it difficult for employers to provide quality, affordable health insurance for workers and retirees while also remaining competitive in the global marketplace. The percentage of large firms providing workers with retiree health coverage has dropped from 66 percent in 1988 to 29 percent in 2009.1 Health insurance premiums for older Americans are over four times more expensive than they are for young adults,2 and the deductible these enrollees pay is, on average, almost four times that for a typical employer-sponsored insurance plan.3
The Affordable Care Act creates a new program called the Early Retiree Reinsurance Program to help address this challenge that employers and older employees are facing. The Early Retiree Reinsurance Program provides $5 billion in financial assistance to employers and unions to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare.
Businesses, other employers, and unions that are accepted into the program will receive reimbursement for medical claims for early retirees and their spouses, surviving spouses, and dependents. Savings can be used to reduce employer health care costs, provide premium relief to workers and families, or both. Applicants who are approved into the program receive reinsurance for the claims of high-cost retirees and their families (80 percent of the costs from $15,000 to $90,000). The program ends on January 1, 2014 when State health insurance Exchanges are up and running.
HHS has approved the following sponsors from Minnesota. More applications are being approved each day.
- 789 United Food & Commercial Wrkrs & St-PL Food Wrkrs Hlth Pln
- Alden Conger Public Schools*
- Alexandria Board of Public Works
- Allete, Inc
- Alliant Techsystems Inc.
- Allianz Life Insurance Company of North America
- American Crystal Sugar Company
- Ameriprise Financial, Inc.
- Andersen Corporation
- Annandale Public School
- Anoka-Hennepin School Dist No 11
- APi Group, Inc.
- Asbestos Workers Local No. 34 Health and Welfare Plan
- BCBSM, Inc. (dba: Blue Cross and Blue Shield of MN
- Belle Plaine ISD 716
- Beverage Drivers Helpers & Inside EMP Local 792
- Board of Pensions of the Evangelical Lutheran Church in America
- Board of Trustees of the Minnesota Cement Masons Health & Welfare F
- Board of Trustees of the MN Teamsters Construction Division Health &
- Board of Trustees of the Twin City Floor Covering Fringe Benefit Trust Fund
- Board of Trustees of Twin City Pipe Trades Welfare Fund
- Cargill, Incorporated
- Carpenters & Joiners Welfare Fund
- Cemstone Products Company
- Ceridian Corporation
- Children's Health Care Minneapolis
- CHS Inc.
- City of Anoka
- City of Apple Valley
- City of Bemidji
- City of Benson
- City of Bloomington, MN
- City of Brooklyn Center
- City of Burnsville
- City of Detroit Lakes
- City of Duluth
- City of Eagan
- City of East Grand Forks
- City of Elk River
- City of Fergus Falls
- City of Golden Valley
- City of Hibbing
- City of Lakeville
- City of Mankato
- City of Maple Grove
- City of Minneapolis
- City of Minnetonka
- City of Montevideo
- City of Moorhead
- City of Mound
- City Of New Ulm
- City of Redwood Falls
- City of Robbinsdale
- City of Roseville
- City of Saint Paul Finance-Accounting
- City of Savage
- City of South St. Paul
- City of St. Cloud
- City of St. Louis Park
- City of Virginia
- City of Warroad
- City of Waseca
- Clearwater County
- Cold Spring Granite Company
- Connexus Energy
- Construction Industry and Laborers Health and Welfare Plan
- Cottonwood & Jackson Cos. Ind School Dist 177
- County of Anoka
- County of Benton Ind School Dist 51 Foley Public Schools
- County of Blue Earth
- County of Blue Earth Ind. School Dist. 77
- County of Hennepin Ind School Dist 279*
- County of Hubbard
- County of Itasca
- County of Lesueur Ind. School Dist. 394
- County of McLeod, Ind. School Distr. #423
- County of Olmsted
- County of Ramsey
- County of St Louis
- Courage Center
- Crow Wing County
- Dakota County, Minnesota
- Dakota Electric Association*
- Deluxe Corporation
- District No. 77 I.A.M.A.W. Welfare Association
- Duluth Building Trades
- East Central Energy*
- Ecolab INC.
- Education Minnesota
- Electrical Workers Health & Welfare Fund
- Fertile-Beltrami Public Schools Ind. School Dist. 599
- Fillmore Central ISD 2198
- Florida Water Services Corporation
- Fridley Public Schools
- GCC-IBT Local 1-M
- Graco Inc.
- Grand Meadow School
- Graphic Communications Local #1 B Health & Welfare
- Great River Energy
- Group Health Plan, Inc.
- Heartland Healthcare Fund
- Hennepin County
- Hennepin Health System, Inc.
- Hermantown I.S.D #700
- Hibbing Public Utilities Commission
- Hormel Foods Corporation
- Horton Holding, Inc.
- I.B.E.W. 292 Health Care Plan
- Ind School Dist 191
- IND School Dist 197 Dakota City
- Ind School Dist 2134
- Ind School Dist 31 Beltrami County
- Ind School Dist 318 Itasca County
- Ind School Dist 32
- Ind School Dist 447
- Ind School Dist 508
- Ind School Dist 531
- Ind School Dist 728
- Ind School Dist 879
- Ind School Dist47
- Ind School District 139
- Independent School Distrcit No 625
- Independent School District #270
- Independent School District #2752
- Independent School District #391
- Independent School District #535
- Independent School District #676
- Independent School District #829
- Independent School District 162
- Independent School District 196
- Independent School District 2171 - Kittson Central School
- Independent School District 256 Goodhue County
- Independent School District 2683
- Independent School District 2687
- Independent School District 273, Edina Public Scho
- Independent School District 280
- Independent School District 283
- Independent School District 2890
- Independent School District 2895 Jackson Co Central Public Schools
- Independent School District 332
- Independent School District 38 A Corporation*
- Independent School District 600
- Independent School District 601
- Independent School District 624
- Independent School District 738
- Independent School District 877
- Independent School District 881
- Independent School District 885
- Independent School District N0 492
- Independent School District No 15
- Independent School District No 466
- Independent School District No. 199*
- Independent School District No. 2144*
- Independent School District No. 477
- Independent School District No. 623
- Independent School District No. 701
- Independent School DistrictNo 112
- ISD #834 Stillwater Area Public Schools
- ISD 138 County of Chisago
- Lac Qui Parle County Ind School District #378
- Lake Country Power
- Land O' Lakes, Inc.
- Larson Engineering, Inc.
- Light & Water Dept.
- Local 434 Health and Welfare Fund
- Mankato Clinic, Ltd.
- Marshall County Central Schools
- Marshall Municipal Utilities
- Marshall Public Schools 413 Ind. School District
- Mayo Clinic
- Medtronic, Inc.
- Mercury Minnesota Inc.
- Mesabi East School District #2711
- Metropolitan Airports Commission
- Metropolitan Council
- Minneapolis Public Schools
- Minnesota & North Dakota Bricklayers & Allied Craftworkers Health Fund
- Minnesota Annual Conference of the United Methodist Church
- Minnesota Ind. School District 593
- Minnesota Independen School District 621, Mounds View Public SchoolsI
- Minnesota Laborers Health and Welfare Fund
- Minnesota Life Insurance Company
- Minnesota Teamsters Health & Welfare Plan
- Minnesota Valley Electric Cooperative
- Minnewaska Area Schools #
- Misc Drivers & Helpers Union Local #638 Health, Welfare, Eye & Dental
- MN Council Number 5 of AFSCME
- Morris ISD 769
- Mower County Government
- National Joint Powers Alliance
- Nexen Group, Inc.
- Northome Indus ISD No.363
- Operating Engineers Local #49 Health & Welfare Fund
- Painters and Allied Trades District Council #82 Health Care Fund
- Park Nicollet Health Services
- Park Rapids Schools ISD 309
- Plasterers & Cabinet Makers Health Fund
- Plummer Independent School District 628*
- Polk County
- Publishing House of the Evangelical Lutheran Church in America
- Regents of the University of Minnesota
- Retail Meat Cutters and Food Handlers Health & Welfare Fund
- Rice Dakota & Goodhue COS Independent School Dist 659*
- Roofers Local #96 Health and Welfare Fund
- Roseau County
- Sartell Independent School District No 748
- Scott County
- Scott County Independent School District 719
- Scott Rice & Le Sueur Cos Ind School Dist 721
- SFM Mutual Insurance Company
- Sheet Metal #10 Benefit Fund
- Soo Line Railroad Company
- South Central Minnesota Electrical Workers Family Health Plan
- Southern Minnesota Beet Sugar Cooperative
- St. Cloud ISD 742
- St. Louis County Schools
- St. Paul Auto Dealers and District Lodge No. 77 I.A.M.A.W. Joint Fund
- St. Paul Electrical Workers Health Plan
- State of Minnesota
- State of Minnesota-Minnesota Management and Budget State Treasurer Office
- Stearns & Meeker Cos Ind School Dist 739
- Stearns County Ind School Dist 740
- SUPERVALU INC.
- TEAM Industries, Inc.
- Tennant Company
- The ISD 622 Education Center
- The Toro Company
- The Travelers Companies, Inc.
- Thief River Falls Public Schools
- Three Rivers Park District
- Tri-County Community Corrections
- Trustees of The Hamline University of Minnesota
- Twin Cities Bakery Drivers Health and Welfare Fund
- Twin City Glaziers Health & Welfare Plan
- Twin City Iron Workers Health & Welfare Fund
- U.S. Bancorp
- Wabasha and Goodhue Cos
- Washington County
- Waterous Company
- Watertown-Mayer ISD #111
- Waterville-Elysian-Morristown Public Schools
- Western National Mutual Insurance Company
- Win-E-Mac Schools
- Wright Hennepin Cooperative Electric Association
- Xcel Energy Inc.
*New program participants as of May 24, 2011. List to be updated monthly.
[1] Kaiser / HRET. Employer Health Benefits: 2009 Survey.
[2] Center for Policy and Research. Individual Health Insurance 2009.
[3] Kaiser Family Foundation. 2010. Survey of People Who Purchase Their Own Insurance.