According to HHS, businesses and other employers and unions that are accepted into the program will receive partial reimbursement (up to 80 percent of claims costs for health benefits between $15,000 and $90,000) for medical claims incurred starting June 1. Claims can come from early retirees and their spouses, surviving spouses, and dependents.

Savings may be used to reduce employer or union health care costs, provide premium or out-of-pocket relief to workers, retirees, and their families, or both. [Click here for a Q&A presentation about the program]

"I am incredibly pleased to see so many employers embrace this important new program to maintain coverage for people who often have a difficult time finding affordable coverage," said HHS Secretary Kathleen Sebelius in a statement. "The Affordable Care Act helps large and small businesses to provide security to early retirees and their families."

But analysis from the Employee Benefit Research Institute showed the $5 billion – set to last until Jan. 1, 2014 or until the funds are exhausted – would likely not last more than two years and wouldn't be available in 2012 or 2013.

Employers and unions interested in the Early Retiree Reinsurance Program should visit www.ERRP.gov or call 1-877-574-3777 or 877-574-ERRP. More information about the Early Retiree Reinsurance Program, a full alphabetical list of participants, and an interactive map displaying participants by state is available online.

A downloadable application for plan sponsors is available here.

Facts about The Early Retiree Reinsurance Program (source: The White House, Office of the Press Secretary)

Relief for Businesses

• Employers who are accepted into the program will receive reinsurance reimbursement for medical claims for retirees age 55 and older who are not eligible for Medicare, and their spouses, surviving spouses, and dependents.
• Health benefits that qualify for relief include medical, surgical, hospital, prescription drug, and other benefits that may be specified by the Secretary of Health and Human Services, as well as coverage for mental health services.
• The amount of this reimbursement to the employer plan is up to 80 percent of claims costs for health benefits between $15,000 and $90,000. Claims incurred between the start of the plan year (often January 1) and June 1 are credited towards toward the $15,000 threshold for reimbursement. However, only medical expenses incurred after June 1, 2010 are eligible for reimbursement under this program.
• For example: If an individual incurs costs of $30,000 between the start of the plan year and June 1, and $40,000 after that date. The amount which may be reimbursed is $40,000 – the costs above the $15,000 threshold that occur after June 1.
• If a plan incurs $90,000 or more in expenses before June 1, it is treated as having met the $15,000 threshold and is eligible for reimbursement for costs incurred after June 1.
• These limits apply and claims are filed for individual's costs. Firms cannot add two or more individuals together to attain the threshold.
• Both self-funded and insured plans can apply, including plans sponsored by private entities, state and local governments, nonprofits, religious entities, unions, and other employers.

Bridge to 2014

• HHS will begin the Early Retiree Program on June 1, 2010, in advance of the June 21 start date required by the Affordable Care Act, allowing more claims to qualify for reinsurance payments for plans this year.
• Eligible employers can apply for the program through the Department of Health and Human Services. Applications will be available by the end of June.
• To receive assistance, plans must have their applications approved, document claims, and implement programs and procedures that have or have the potential to generate cost savings for participants with chronic and high-cost conditions.
• Plans will be subject to audits to assure fiscal integrity.
• The Early Retiree Reinsurance Program will assist these employer plans and individuals with the cost of health care coverage and health care.
• The program ends on Jan. 1, 2014 when early retirees will be able to choose from the additional coverage options that will be available in the health insurance exchanges.