Tuesday, August 31, 2010
The City of San Angelo has been accepted into the Early Retirement Reinsurance Program (ERRP). The program was established by the health reform bill, abbreviated as PPACA. ERRP will provide "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." The City will receive reinsurance for the claims of high-cost retirees and their families (80 percent of the costs from $15,000 to $90,000)."
Not long ago the City changed its retiree health plan, much to the consternation of those covered. How does federal money change things? I asked city representatives, Ty Meighan and Veronica Sanchez, for the projected impact.
Veronica said the city got notice today of their acceptance. She shared projections from Holmes Murphy, the city's consultant. Holmes Murphy projected a low, expected and high number for the federal contribution. For the first year the expected assistance is $307,484, however it could be as low as $91,217 or as high as $383,915. The second year's expected amount is $345,920, but it could range from $102,619 to $431,904. Given the list of recipients, the $5 billion amount may not last to year 2.
by PEU Report/State of the Division at 11:58 AM