Early Retiree Reinsurance Program
The Early Retiree Reinsurance Program (ERRP) provides reimbursement to participating employment-based plans for a portion of the costs of health benefits for early retirees and early retirees’ spouses, surviving spouses, and dependents. The program was authorized in the Patient Protection and Affordable Care Act.
Key points
What is the purpose of the Early Retiree Reinsurance Progam?
The purpose of ERRP is to make health benefits more affordable for plan participants and sponsors so that health benefits are accessible to more Americans. The reimbursement may be used to reduce the sponsor’s health benefit premiums or health benefit costs, to reduce health benefit premium contributions, copayments, deductibles, coinsurance, and other out-of-pocket costs for plan participants, or to reduce any combination of these costs.
What you need to know
How to participate
Applications are no longer being accepted for the Early Retiree Reinsurance Program.
How can the reimbursement be used?
The reimbursement can only be used to reduce the sponsor’s health benefit premiums or health benefit costs, to reduce health benefit premium contributions, copayments, deductibles, coinsurance, and other out-of-pocket costs for plan participants, or to reduce any combination of these costs. Payments can not be used as revenue or as gross income.
How are FCHP plans affected?
FCHP can upload the Early Retiree detailed claim data file to the ERRP Web site on behalf of plan sponsors, if desired.
For more information about the Early Retiree Reimbursement Program, download the PDF fact sheet:
Early Retiree Reinsurance Program (pdf, 81 KB)