Georgia – 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 Georgia. More applications are being approved each day.
- 1st Franklin Financial Corporation
- AGC Automotive Americas Co. and AGC Glass Co. North America, Inc.
- AGCO Corporation
- AGL Resources, Inc.
- Alcatel-Lucent USA Inc.
- Alston & Bird LLP
- Athens Regional Health Services, Inc.
- Atlanta Plumbers and Steamfitters Local 72
- Bartow County Government
- Bd of Trustees Plumbers & Steamfitters Local Union 43
- Board of Regents of the University System of Georgia
- Board of Trustees of Southern Painters Welfare Fun*
- Burgess Pigment Company
- Central Georgia Health System, Inc.
- Chatham County*
- Cherokee County Board of Commissioners
- Choicepoint Inc.
- City of Decatur, Georgia
- City of Douglas*
- City of Fayetteville
- City of Griffin*
- City of Jesup
- City of Marietta/Board of Lights & Water
- City of Rome, Georgia
- City of Savannah
- City Of Smyrna
- City of Thomasville
- Cobb County Government - Board of Commissioners
- Cobb Energy Management Corporation
- Coca-Cola Enterprises Inc.
- Colonial Group, Inc.
- Cox Enterprises, Inc.
- DeKalb County Board of Commissioners
- DeKalb Medical Center Inc*
- Delta Air Lines, Inc.
- Doosan Health and Welfare Plan
- Dougherty County Board of Commissioners of Roads and Revenue
- DP3 VEBA Trust
- Emory University
- Equifax Inc.
- Fort James Corporation
- Fulton County Government
- Genuine Parts Company
- Georgia Bankers Association Insurance Trust, Inc.
- Georgia Department of Community Health
- Georgia Municipal Employees Benefit System (GMEBS)
- Georgia-Pacific, LLC
- Global Aero Logistics inc.
- Global Aviation Holdings, Inc.
- Glynn County Board of Commissioners*
- Gwinnett County Board of Commissioners
- Hamilton Health Care System, Inc.
- Heidelberg USA, Inc.
- IBEW Local 613 & Contributing Employers Family Health Plan
- IBEW Local Union #1579 H&W Plan
- ING North America Insurance Corporation
- IVZ, Inc.
- Lowndes County Commissioner of Roads and Revenues
- Metropolitan Atlanta Rapid Transit Authority (MARTA)
- Metso USA, Inc.
- Mohawk Carpet Corporation
- NCR Corporation
- NECA/IBEW Family Medical Care Trust Fund ("Board of Trustees")
- Neenah Paper, Inc.
- Newnan Water & Light Commission
- North American Mission Board of the Southern Baptist Convention, Inc*
- OCI Chemical Corporation
- OFS Fitel, LLC
- Painter District Council No 78 Health and Welfare*
- Rheem Manufacturing Company
- Sheet Metal Workers Welfare Fund #85
- South Central UFCW Unions & Employers Health & Welfare
- Southern Company Services, Inc
- Southwire Company
- SunTrust Banks, Inc.
- Textile Rubber & Chemical Company, Inc.
- The Coca-Cola Company
- The Corporation of Mercer University
- Thiele Kaolin Company
- Travelport LP
- UFCW Union Local1995 & Employers Health and Welfare Plan
- United Parcel Service of America, Inc.
- Whitfield County*
*New program participants as of May 24, 2011. List to be updated monthly.