ACA Facts: Early Retiree Reinsurance Plan (ERRP)

October 2, 2012

Early Retiree Reinsurance Plan (ERRP)

The ACA establishes a program to subsidize and support employer and union plans that cover early retirees between ages fifty-five and sixty-four. This financial relief comes in the amount of $5 billion through 2014, and ensures that despite rising costs in healthcare, employers can provide healthcare to all as well as remain competitive in the global marketplace. Without this provision, many retirees will continue to be left without employer-sponsored insurance until they become eligible for Medicare, causing them to rely and deplete their life savings because of exorbitant rates in the individual health insurance market. This program provides temporary assistance until January 1, 2014 when early retirees and their families will get to choose from a range of coverage options that will be available through new affordable health insurance Exchanges.