Early Retiree Reinsurance Program

 

The program provides reimbursement to sponsors of participating employment-based plans for a portion of the cost of health benefits for early retirees and their spouses, surviving spouses, and dependents. The purpose of the reimbursement is to make health benefits more affordable for plan participants and sponsors so that health benefits are accessible to more Americans than they would otherwise be without this program.

General information about this opportunity
Last Known Status
Active
Program Number
93.546
Federal Agency/Office
Centers For Medicare and Medicaid Services, Department of Health and Human Services
Type(s) of Assistance Offered
C - Direct Payments For Specified Use
Program Accomplishments
Not applicable.
Authorization
Patient Protection and Affordability Act, Section 1102
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
In order to have been eligible for the ERRP, a plan sponsor must have completed and submitted an ERRP application to the ERRP Center on or before May 5, 2011. In summary, the plan sponsor must be an organization that provides health benefits to Early Retirees, have programs and procedures in place that generate cost savings with respect to participants with chronic and high-cost conditions, use reimbursements appropriately, ensure that policies and procedures are in place to protect against fraud, waste and abuse under ERRP, and agree to the Plan Sponsor Agreement included in the ERRP application. Applications were reviewed and either approved or not approved for acceptance in to the program
Beneficiary Eligibility
In order to be eligible to receive reimbursements under the ERRP, a plan sponsor must have completed and submitted an ERRP application to the ERRP Center on or before May 5, 2011. If approved, both the sponsor, and early retirees and their spouses, surviving spouses and their dependents are direct or indirect beneficiaries of the program. In summary, the sponsor must be an organization that provides health benefits to Early Retirees, have programs and procedures in place that generate (or have the potential to generate) cost savings with respect to participants with chronic and high-cost conditions, use reimbursements appropriately, ensure that policies and procedures are in place to protect against fraud, waste and abuse under ERRP, and agree to the Plan Sponsor Agreement included in the ERRP application.
Credentials/Documentation
A sponsor must have submitted an application for the program to the ERRP Center on or before May 5, 2011. After approval into the program, in order to receive program funds a sponsor must provide the ERRP Center with a list of the Early Retirees and the cost and claims data for which it is requesting in reimbursement. This program is excluded from coverage under OMB Circular No. A-87.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable.
Application Procedure
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Award Procedure
Sponsors must have completed and submitted an application to the ERRP Center on or before May 5, 2011. Reimbursement requests are no longer being accepted. The program ended January 1, 2014.
Deadlines
May 5, 2011 The ERRP ended January 1, 2014. Administrative activities to close out systems and operations are underway. On May 05, 2011, the program ceased accepting applications from sponsors.
Approval/Disapproval Decision Time
From 1 to 15 days. Applications were generally processed within 2 weeks of receipt. Applications and reimbursement requests are no longer being accepted. The program ended January 1, 2014.
Appeals
Sponsors may appeal an adverse reimbursement determination. .
Renewals
Not applicable.
How are proposals selected?
Not applicable.
How may assistance be used?
ERRP regulation specifies the only permissible ways in which sponsors may use the proceeds under this program. They permissible ways are: (1) To reduce the sponsor’s health benefit premiums or health benefit costs, or (2) To reduce health benefit premium contributions, copayments, deductibles, coinsurance, or other out-of-pocket costs, or any combination of these costs, for plan participants, or (3) To reduce any combination of the costs in (1) and (2). In addition, there is an additional restriction that proceeds under this program must not be used as general revenue for the sponsor. (See the ERRP regulation at 45 C.F.R. §149.200).
What are the requirements after being awarded this opportunity?
Reporting
Not applicable.
Auditing
Audits of sponsors will be conducted to ensure sponsors are in compliance with ERRP requirements.
Records
The ERRP does not require specific progress, expenditure, cash reports, or performance monitoring at set intervals. However, the sponsors must comply with record maintenance requirements and provide records upon request in connection with audit or other ERRP integrity related activities. The Sponsors must maintain records for 6 years after the expiration of the plan year in which the costs were incurred, or longer if otherwise required by law. The records that must be retained are as follows- (1) All documentation, data, and other information related to the regulations, and (2) Any other records specified by the Secretary. The Secretary may issue additional guidance addressing recordkeeping requirements, including (but not limited to) the use of electronic media. The sponsor must require its health insurance issuer or employment based plan, as applicable, to maintain and produce records upon request.
Other Assistance Considerations
Formula and Matching Requirements
Statutory Formula: Title Patient Protection and Affordability Care Act Part 1102 Subpart c Patient Protection and Affordability Care Act

Matching is voluntary. This program has maintenance of contribution requirements, to ensure that the prohibition against using ERRP funds as general revenue, is complied with. A sponsor may demonstrate that it is maintaining its level of contribution in a number of ways: using aggregate spending trends, per-capita spending trends, or other methods subject to Secretarial approval. These options are set forth in a publicly posted Common Question.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
The reimbursement will be available until January 01, 2014. ERRP reimbursement may no longer be requested. After (1) the Account Manager and Authorized Representative successfully register via the ERRP secure website; (2) the sponsor provides banking information in the website; and (3) the sponsor provides a list of Early Retirees and the cost and claims data supporting reimbursement requests, the sponsor may submit a reimbursement request (after the authorized representative also affirms sponsor is complying with program rules). The ERRP Center will make a determination of whether the reimbursement is approved or denied. If approved, the reimbursement will be deposited in the bank account chosen by the sponsor. Sponsors may request reimbursement one time, each calendar year quarter, for each plan year.
Who do I contact about this opportunity?
Regional or Local Office
None/Not specified.
Headquarters Office
Michelle Feagins
200 Independence Avenue, SW

Washington, DC 20201. US
michelle.feagins@hhs.gov
Phone: 301-492-4312.
Website Address
http://www.cms.gov
Financial Information
Account Identification
75-0114-0-1-551
Obligations
(Direct Payments for Specified Use) FY 18$31,171.00; FY 19 est $100,000.00; FY 20 est $100,000.00; FY 17$0.00; FY 16$0.00; - There is appropriated to the Secretary, out of any moneys in the Treasury not otherwise appropriated, $5,000,000,000 to carry out the program under this section. Such funds shall be available without fiscal year limitation. Program ends January 1, 2014. Administrative activities to close out systems and operations are underway.
Range and Average of Financial Assistance
Smallest: $50.96; Largest: $387,187,079.81; Average: $1,745,808.92 (All data as of June 2014).
Regulations, Guidelines and Literature
Regulations are available at 45 CFR Part 149. Additional information is available at http://www.cms.gov/CCIIO/Programs-and-Initiatives/Insurance-Programs/Early-Retiree-Reinsurance-Program.html.
Examples of Funded Projects
Not applicable.

 



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