Business Insurance reports that under the program, authorized as part of the recently passed health care reform measure, Congress has allocated $5 billion to reimburse employers with health care plans covering early retirees, defined as those between ages 55 and 64. The government will reimburse employers 80% of each claim between $15,000 and $90,000.
In its fact sheet, HHS says medical, surgical, hospital and prescription costs are eligible for tax-free reimbursement, according to Business Insurance.
Employers that receive the payments are required to use the proceeds to lower early retirees’ health care costs, such as by reducing premium contributions, copayments, or deductibles.
The program will begin June 23 of this year and end January 1, 2014.Guidance is available online at http://www.whitehouse.gov.