Retiree Reinsurance Program Will Be Exhausted in Two Years

[mickeyd]

I was unaware of this program, but it seems to be running out. If you are age 55-65 you might be interested in this.

The $5 billion reinsurance program that provides health benefits to retirees who are over age 55 and not yet eligible for Medicare will likely dry up in two years, according to a study by the Employee Benefit Research Institute. This would be two years ahead of the program’s planned termination date.

Congress appropriated the funds for sponsors of employment-based health plans effective June 1 as part of the Patient Protection and Affordable Care Act of 2010. The program gives an 80% subsidy for retiree claims of between $15,000 and $90,000. The funding plan is designed to terminate on Jan. 1, 2014.

Study: Retiree Reinsurance Program Will Be Exhausted in Two Years - Financial Planning

 

[ziggy29]

I'm shocked. Shocked, I say.

 

[dgoldenz]

You mean they underestimated the cost of a health program? Who would've guessed...