On March 2, the Department of Health & Human Services released an annual report summarizing information about the Early Retiree Reinsurance Program (ERRP) in 2010. Here are some key statistics from the report:
- As of December 31, 2010, over 5,000 plan sponsors were approved for participation in the program.
- State and local governments made up almost half of the plan sponsors, with the largest share of the 2010 reimbursements going to those entities. A little over one quarter of the plan sponsors were private companies, 15% were non-profit organizations, and 10% were unions.
- Through December 31, 2010, ERRP issued $535 million in reimbursements to 253 approved plans.
- Payments made to individual health plans ranged from $285.13 to $108.6 million for claims in 2010.
- Approved sponsors sought reimbursement for claims associated with 60,859 individuals (each of whom had total plan costs exceeding the $15,000 ERRP threshold).
- 80% of plan sponsors (who have received 97% of the program funds to date) will use some or all of their reimbursement dollars to lower premiums and out-of-pocket costs for early retirees and their covered spouses and dependents.
- The remaining 20% of sponsors will use the funds they receive to offset increases in their own costs of providing coverage.