Iowa – 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 Iowa. More applications are being approved each day.
- AEGON USA, LLC
- Alliant Energy Corporate Services, Inc.
- Allison Bristow Comm School
- Ament, Inc.
- Anderson Erickson Dairy Co. and Subsidiary
- Ankeny Community School
- Area Education Agency No 1 of Iowa
- Aviva USA Corporation
- Ballard Community School District
- Boone Community School District
- Buena Vista Regional Medical Center
- Burlington Community School District
- Burlington Municipal Waterworks
- Cedar Rapids Electrical Workers #405 Health and Welfare Fund
- Central Iowa Sheet Metal Workers Health Fund
- Central Lee Community School District
- Chesterman Co.*
- City of Ankeny
- City of Burlington
- City of Cedar Rapids
- City of Clinton
- City of Clive
- City of Council Bluffs
- City of Danville
- City of Davenport
- City of Des Moines
- City of Dubuque
- City of Fairfield
- City of Harlan
- City of Keokuk
- City of Muscatine
- City of Ottumwa
- City of Spencer
- City of Waterloo*
- City of West Des Moines
- Clarksville Community School District
- Clay County
- Colfax-Mingo Community School
- County of Chickasaw
- County of Clayton
- County of Des Moines
- County of Monona
- Davis County Com School District
- Davis County Community School*
- Denison Community School District
- Des Moines Area Community College
- Des Moines County Solid Waste Commission
- Des Moines Iron Workers Welfare Fund
- Des Moines Public Schools
- Des Moines Water Works
- Dubuque Community School District
- Dunkerton Con School District
- Durant Community School District
- Eastern Iowa Community College
- Eldora-New Providence Community School Dist
- EMCC VEBA Retiree Medical Benefit Master Trust
- Farmers Cooperative Association
- FBL Financial Group, Inc
- Federal Home Loan Bank of Des Moines
- Fort Madison Schools
- Fredericksburg Community School District
- Gelita USA Inc
- Grand View University
- Great Prairie Area Education Agency
- Great River Health Systems, INC. 410 (K) Retirement Plan
- Grundy County
- Hancock County
- Harlan Community School District
- Hartley Melvin Sanborn Community School District
- Hawkeye Community College
- HNI Corporation
- Hudson Community School District*
- Hy-Line International
- IBEW Local Union #347 Health and Welfare Plan
- Indian Hills Community College
- Iowa Bankers Benefit Plan
- Iowa Department of Administrative Services
- Iowa Laborers District Council Health & Welfare Fund*
- Iowa Schools Employee Benefits Association
- Iowa State University
- Iowa Western Community College
- Janesville Consolidated School District
- Jefferson County
- Jesup Cons School District
- Keokuk Community School Dist
- Keokuk Health Systems, Inc
- Keota Community School District
- Klinger Companies, Inc.
- Lewis Central Community Schools
- Linn Cooperative Oil Company
- Linn County
- Louisa Muscatine Community School District
- Luther College
- Manson-Northwest Webster Community
- Mary Greeley Medical Center
- McGladrey & Pullen, L.L.P.
- Mediapolis Community School Dist
- Meredith Corporation
- Metro Interagency Insurance Program (MIIP)
- Mid-America Agri-Industries VEBA
- MidAmerican Energy Company
- Mississippi Bend Area Education Agency
- Morning Sun Community School
- Mt Pleasant Comm School Dist
- Muscatine Power & Water
- NEA-Local No. 145 IBEW Welfare Plan
- New London Community School District
- Operating Engineers Local 234 Health and Welfare Fund
- Ottumwa Community School District
- Pekin Community School Dist
- Pella Corporation
- Pharmacists Mutual Insurance Company
- Pioneer Hi-Bred International, Inc.
- Plumbers & Steamfitters Local 33 Health & Welfare Fund
- Polk County
- Pottawattamie County
- Principal Financial Group
- Rockwell Collins, Inc.
- Roquette America, Inc.
- Ruan Transport Corporation
- Sauer-Danfoss (US) Company
- Scott County
- Seymour Community School District
- Sibley-Ocheyedan Community School District
- Southeast Iowa Regional Airport Authority
- Southeastern Community College
- Spencer Community School District
- The University of Iowa
- Two Rivers Levee Association
- United Fire & Casualty Company
- Veridian Credit Union
- Vermeer Manufacturing Company
- Waterloo Industries, Inc
- West Burlington Independent School District
- West Central Community School Dst
- West Des Moines Community School District
- Williamsburg Community School District
- Wilton Community School District
- Winnebago County
- Woodbury County
*New program participants as of May 24, 2011. List to be updated monthly.