Michigan – 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 Michigan. More applications are being approved each day.
- American Axle and Manufacturing. Inc.
- American Seating Company, Inc.
- ArvinMeritor, Inc.
- Bay County
- Bay County Medical Care Facility
- Bio-Serv Corporation
- BISSELL Inc.
- Blue Cross Blue Shield of Michigan
- BorgWarner Inc.
- Cadillac Rubber and Plastics Inc.
- Calvin College
- Charter County of Wayne Michigan
- Charter Township of Bloomfield
- Charter Township of Brownstown
- Charter Township of Canton
- Charter Township of Clinton
- Charter Township of Independence
- Charter Township of Plymouth
- Charter Township of Redford
- Charter Township of Shelby
- Charter Township of Waterford
- Chrysler Financial Services Americas, LLC
- Chrysler Group LLC
- Citizens Republic Bancorp
- City of Allen Park
- City of Ann Arbor
- City of Auburn Hills
- City of Battle Creek
- City of Berkley
- City of Birmingham
- City of Bloomfield Hills
- City of Center Line
- City of Clawson
- City of Dearborn
- City of Dearborn Heights
- City of Detroit
- City of East Grand Rapids
- City of East Lansing, Michigan
- City of Ecorse
- City of Farmington Hills
- City of Ferndale
- City of Flint
- City of Fraser
- City of Garden City
- City of Grand Blanc
- City of Grand Haven
- City of Grosse Pointe
- City of Grosse Pointe Farms
- City of Grosse Pointe Park
- City of Grosse Pointe Woods
- City of Harper Woods Health Care Plan
- City of Harper Woods*
- City of Hazel Park
- City of Highland Park
- City of Inkster
- City of Iron Mountain Chief Acct Officer*
- City of Lansing
- City of Lincoln Park
- City of Livonia
- City of Madison Heights
- City of Marquette
- City of Marysville
- City of Melvindale*
- City of Midland, Mi
- City of Mount Clemens
- City of Muskegon City Auditor
- City of Niles
- City of North Muskegon
- City of Novi Tax Identification Number
- City of Oak Park
- City of Pleasant Ridge*
- City of Pontiac
- City of Port Huron
- City Of River Rouge
- City of Rochester
- City of Roseville
- City of Royal Oak
- City of Saginaw
- City of Southfield
- City of Southgate
- City of St Clair Shores
- City of Sterling Heights
- City of Sturgis
- City of Taylor*
- City of Traverse City
- City of Troy
- City of Warren
- City of Wayne
- City of Westland and 18th District Court*
- City of Wyoming, Michigan
- City Treasurer
- Coalition of Public Safety
- Consumers Energy Company
- County of Calhoun
- County of Eaton
- County of Genesee
- County of Hillsdale
- County of Huron
- County of Jackson
- County of Kalamazoo
- County of Kent*
- County of Macomb
- County of Marquette
- County of Mason
- County of Midland
- County of Monroe
- County of Ottawa
- County of Saginaw
- Coveant Medical Center
- Delphi Salaried Retiree Association Benefit Trust
- Detroit & Vicinity Trowel Trades Health & Welfare
- Detroit Annual Conference of the UMC
- Detroit Millmen's Health and Welfare Fund
- Detroit Pattern Makers Insurance Fund
- Detroit Stoker Company
- DFCU Financial
- Dow Corning Corporation
- DTE Energy Company
- Electrical Workers Insurance Fund
- Flint Area Sheet Metal Workers Health & Welfare Fu
- Flint Plumbing & Pipefitting Industry Health Care Fund
- Ford Motor Company
- General Motors LLC
- Genesee County Community Health
- Genesee County Road Commission
- Genesee County Water and Waste Services
- Genesys Regional Medical Center
- GKN North America Services, INC.
- Grand Rapids Gravel Company
- Grand Traverse County
- Grand Traverse County Road Commission
- Guardian Industries Corp
- Haworth International, Ltd.
- Heat & Frost Insulators & Allied Craftworkers Local 47 Welfare Fund
- Heat & Frost Insulators & Allied Workers Local 25 Welfare Fund
- Henniges Automotive Holdings, Inc.
- HLI Operating Company, Inc.
- Holcim (US) Inc.
- HURLEY MEDICAL CENTER
- Huron-Clinton Metropolitan Authority
- IBEW Local No. 461 Welfare Fund
- Ingham County, Michigan
- International Association of Machinists Motor City Welfare Fund
- International Brotherhood of Electrical Workers 17 Welfare Fund
- International Union, UAW
- Iron Workers' Health Fund of Eastern Michigan
- Iron Workers Local 549 and 550 Medical and Benefit Fund
- Ironworkers Local 340 Health Care Plan
- Jackson County Road Commission*
- Kalamazoo Plumbers & Steamfitters Local 357 Health & Welfare Plan
- Kamminga & Roodvoets, Inc.
- Kellogg Company
- Kelsey-Hayes Company
- Kent County Road Commission
- Laborers' Metropolitan Detroit Health Care Fund
- Lansing Board of Water & Light
- Lear Corporation
- Legislative Retirement System
- Livingston County Treasurer
- Louis Padnos Iron & Metal
- Macatawa Bank
- MAG Industrial Automation System*
- Manitique Papers, Inc.
- McNaughton-McKay Electric Company
- MEA Financial Services, Inc.
- Michiana Area Electrical Health and Welfare Fund
- Michigan BAC Health Care Fund
- Michigan Carpenters Health Care Fund
- Michigan Conference of Teamsters Welfare Fund
- Michigan Education Association
- Michigan Education Special Services Association
- Michigan Electrical Employees' Health Plan
- Michigan Glass and Glazing Industry Local 357 Welfare Insurance Fund
- Michigan Laborers'Health Care Fund
- Michigan Regional Council of Carpenters Employee Benefit Fund
- Michigan State AFL-CIO Public Employees Trust
- Michigan Tractor & Machinery Co. d/b/a Michigan CAT
- Michigan Trowel Trades Health & Welfare Fund
- Miller, Canfield, Paddock and Stone P.L.C.
- Millwrights Local 1102 Health & Welfare Fund
- Monroe County Road Commission
- Monroe Plumbers & Pipefitters Local Union NO. 671 Health & Welfare
- MTM Retiree Health Care Plan & Trust*
- Munson Medical Center
- Muskegon Charter Township
- Muskegon County
- National Employee's Health Plan Trust
- NECA-IBEW Local 684 Health & Welfare Trust Fund
- NECA-IBEW Local No. 364 Welfare Trust Fund
- Oakland County Employees Retirement
- Oakland University
- Ontonagon County Road Commission*
- Operating Engineers Local 324 Health Care Plan
- Painters Union Insurance Fund
- Pipefitters Local 636 Insurance Fund
- Plumbers & Pipefifters Local No. 333 Health & Welf
- Plumbers Local No 98 Insurance Fund
- Port Huron Hospital*
- Reed City Hospital Corporation DBA Spectrum Health
- Road Commission for Oakland County
- Road Commission of Macomb County
- Robert Bosch Fuel Systems LLC
- Rohm and Haas Company
- Roofers Local 149 Security Benefit Trust Fund
- Roofers Union Lo 70 Insurance Trust Fund
- Roseau County Independent School District 682
- ROWE Professional Services Company
- Saginaw County Road Commission
- Seco Tools Inc.
- SEMCO Energy, Inc.
- Severstal North America, INC.*
- Seyburn, Kahn, Ginn, Bess et al.
- Sheet Metal Workers Local 292 Health Fund
- Sheet Metal Workers Local 7 Zone 3 Welfare Fund
- Sheet Metal Workers Local 7, Zone 1 Welfare Fund
- Sheet Metal Workers Local Union No. 80 Insurance Trust Fund
- SMART (Suburban Mobility Authority for Regional Transport)
- St Clair County
- State of Michigan
- State of Michigan Public School Employees Retirement System
- Steelcase Inc.
- The Board of Trustees of Michigan State University
- The City of Grand Rapids
- The Dow Chemical Company
- The Regents of the University of Michigan
- ThyssenKrupp Budd Company
- Tile, Terrazzo & Marble Insurance Fund
- Tri County Building Trades Health Fund
- TRW Automotive U.S., LLC
- Twin City Sprinkler Fitters Health Care Plan
- U.A. Local 85 Insurance Fund
- UA Local 190 Plumbers Pipefitters Service Technicians Gas Distribut
- UAW Retiree Medical Benefits Trust
- UAW Retirees of ACC Benefit Trust*
- UAW Retirees of the Dana Corporation Health and Welfare Trust
- Union Carbide Corporation
- Upper Peninsula Plumbers' & Pipefitters' Health & Welfare Fund
- Village of Grosse Pointe Shores
- Washtenaw County
- Washtenaw County Road Commission
- West Branch Regional Medical Center*
- West Shore Bank
- Western Michigan University
- Whirlpool Corporation
- Wolverine World Wide, Inc.*
- Ypsilanti Community Utilities Authority
*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.