New Jersey – 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 New Jersey. More applications are being approved each day.

Agfa Corporation
AHS Hospital Corp
Allied Trust Fund
American Standard Brands
American Water Works Company, Inc.
Asbestos Worker Local 32
Asbestos Workers Local Union 2 Welfare Fund
Automatic Data Processing, Inc.
Avaya Inc.
AXA EQUITABLE LIFE INSURANCE COMPANY
BASF Corporation
Becton Dickinson and Company
Bergen Municipal Employee Benefits Fund
BMW of North America, LLC
Board of Chosen Freeholders of the County of Burlington New Jersey
Board of Trustees New Jersey Building Laborers Statewide Welfare Fun
Board of Trustees Teamsters Local 617
Board of Trustees Teamsters Local 617 Welfare Fund
Booz and Company (N.A.) Inc.*
Borough of Edgewater
Borough of Fair Lawn
Borough of Florham Park
Borough of Fort Lee
BOROUGH OF LITTLE SILVER
Borough of Oakland
Borough of Sayreville
Borough of South Plainfield
BOROUGH OF WEST LONG BRANCH
Brick Township Municipal Utilities Authority
Cadbury Adams Holdings, LLC
Campbell Soup Company
Chubb & Son, a division of Federal Insurance Company
CHURCH & DWIGHT CO.,INC.
CIT Group, Inc.
CITY OF ASBURY PARK
City of Clifton
City of Garfield
City of Hoboken
CITY OF JERSEY CITY
City of Linwood*
City of New Brunswick
City of Newark
City of Paterson
City of Perth Amboy
Columbia Bank
Composition Roofers Local 4 Welfare Fund
County of Bergen
County of Cumberland*
County of Essex*
County of Morris/Mosquito Commission
County of Morris/Park Commission
County of Passaic
County of Sussex
COUNTY OF UNION, NJ
County Treas County of Monmouth NJ
Cytec Industries Inc.
Delaware River Port Authority
Denko Automotive. NJ. Inc.
District 1199J New Jersey Healthcare Employers Be
District Council Iron Workers Welfare Fund of Northern NJ
Educational Testing Service
Elementis Worldwide, Inc.
Ernst & Young U.S. LLP
Evonik Cyro LLC
Evonik Degussa Corporation
Firmenich Incorporated
Formosa Plastics Corporation, U.S.A.
Foster Wheeler Inc.
General Chemical (Soda Ash) Partners Health Care Program
General Chemical Industrial Products, Inc. Health and Security Trust Fund
Gerresheimer Glass Inc.
Givaudan Fragrances Corp.
Gloucester County New Jersey*
Hackensack City Of*
Heavy & General Laborers'Local 472 & Local 172 of NJ Welfare Fund
Hoffmann-La Roche Inc.
Horizon Healthcare Services Inc.
I.U.O.E. Local 25 Marine Division Medical Plan
IBEW 654 H & W FUND TRUSTEES
IBEW Local 102 Welfare Fund
IBEW Local 269 Welfare Fund
IBEW Local 456 Health and Welfare Fund
Ingersoll-Rand Company
Innophos, Inc.
Insurance Services Office, Inc.
Int'l Brotherhood of Elect. Workers 400 Welfare Fu
J.H. Cohn LLP
J.M. Huber
JERSEY CITY INCINERATOR AUTHORITY
Johnson & Johnson
Joint Welfare Fund Local 164
KPMG LLP
Linde North America, Inc.
Local 147 Construction Workers Welfare Fund
Local 351 IBEW Health & Welfare Fund
Lonza America Inc
L'Oreal USA, INC.
Mars Incorporated
Medco Health Solutions Inc.
Mercedes-Benz USA, LLC
Merck Sharp & Dohme Corp.
METRO-ILA FRINGE BENEFIT FUND
Metropolitan Life lnsurance Company
Middlesex County Joint Health Insurance Fund
MOL (AMERICA) INC.
Morris Co Board of Chosen Freehold*
Morris County Municipal Utilities
Munich Reinsurance America, Inc.
NEPTUNE TOWNSHIP
NEW JERSEY B.A.C. HEALTH FUND
New Jersey Carpenters Funds
New Jersey Education Association
New Jersey Manufacturers Insurance Company
New Jersey Resources Corporation
NEW JERSEY SPORTS & EXPOSITION AUTHORITY
New Jersey Transit Corporation
New Jersey Turnpike Authority
NORTH HUDSON REGIONAL FIRE AND RESCUE
North Jersey Municipal Employee Benefits Fund
Novartis Corporation
Novo Nordisk Inc.
NRG Affiliate Services Inc.
Ocean- Monmouth Regional Employee Benefits Fund
Old Bridge Municipal Utilities Authority
Operating Engineers Local 825 Welfare Fund *
PAINTERS DISTRICT COUNCIL 711 HEALTH AND WELFARE FUND
Passaic Valley Sewerage Commissioners
PASSAIC VALLEY WATER COMMISSION
Plumbers & Pipefitters Local 9 Welfare Fund
Plumbers Local 24 Welfare Fund
Plumbers Local Union No 24 Welfare Fund*
Public Service Enterprise Group Incorporated
Realogy Corporation
Reckitt Benckiser
Refrigeration, A/C & Service Division (UA-NJ) Welf
Saint Barnabas Corporation
Sandvik, Inc.
Schering Corporation
Schindler Elevator Corporation
SGS North America Inc.
Sheet Metal Workers Local #25 New Jersey Welfare Fund
Sheet Metal Workers Local 27 Health & Welfare Fund
Siemens Corporation
Solaris Health Systems
South Jersey Gas Company
Southern New Jersey Regional Employee Benefits Fund
State of New Jersey Treasury Dept - Pension Accounting Services
Steamfitters Welfare Fund Local Union No. 475
Subaru of America, Inc.*
Symrise Inc.
TEAMSTERS LOCAL 641 WELFARE FUND
Telcordia Technologies, Inc.
THE BOROUGH OF OCEANPORT
The County of Camden
The Dun & Bradstreet Corporation
The Hertz Corporation
The Port Authority of New York and New Jersey
The Provident Bank
The Prudential Insurance Company of America
The Swatch Group (U.S.), Inc.
The Trustees of the Stevens Institute of Technology
Town of Harrison
TOWN OF MORRISTOWN
Town of Secaucus*
Town of West New York
TOWNSHIP OF BELLEVILLE
Township of Brick
Township of Chatham
Township of East Brunswick
TOWNSHIP OF EAST HANOVER
Township of Franklin
Township of Hamilton
Township of Hillside
Township of Irvington
Township of North Bergen
Township of Plainsboro
Township of Toms River
Township of Washington - Gloucester*
Township of Wayne
Township of Winslow*
Trane U.S. Inc.
Trucking Employees of North Jersey Welfare Fund, I
Trustees of Princeton University
Twp of Robbinsville
UFCW National Health and Welfare Fund
Unilever United States, Inc.
United Association Local Union No. 322 Health and Welfare Fund
UNITED STATES COLD STORAGE, INC.
United Union of Roofers Water-proofers & Allied Workers Local 154 Welfare Fund
United Water Resources Inc.
Verizon Communications Inc.
Welfare Fund of Local 274
Welfare Plan of the International Union of Operating Engineers Local 137
West Windsor Township
Woodbridge Township

*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.

Back to Map