Nice op-ed by Kerry on how re-insurance helps on retirees' health insurance

[karynnj]

Our nation's early retirees are able to take advantage of a new program included in the health reform law designed to make retiree health insurance coverage more stable and affordable.

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Reinsurance is an insurance policy sold to insurance companies. It helps to protect insurers against the losses from enrollees who have major medical expenses such as a heart condition, cancer, and diabetes. Reinsurance is particularly helpful to small and mid-size insurers and employers that provide health coverage to a disproportionate share of sicker and more costly enrollees.

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Employers who participate in the program can receive a reinsurance reimbursement of up to 80 percent of catastrophic medical claims between $15,000 and $90,000 for their early retiree enrollees. The reimbursement is used to reduce the employer's health care costs and to lower premiums to retirees and their families. A new study from Hewitt Associates estimates that the program will reduce the cost of retiree coverage from 25 to 35 percent # anywhere from $2,000 to $3,000 per retiree, per year.

The Early Retiree Reinsurance Program will encourage employers to continue offering health coverage to their employees by providing immediate financial relief to cover those with costly medical expenses. The program ends on Jan. 1, 2014, when important insurance reforms go into effect nationwide that prevent older Americans from being charged exorbitant premiums and when early retirees will have access to additional coverage options in the health insurance exchanges.
http://www.gazettenet.com/2010/07/14/how-health-reform-aids-retirees?SESSd013c038a184cacfd07b8675a872ded2=gnews





http://www.gazettenet.com/2010/07/14/how-health-reform-aids-retirees?SESSd013c038a184cacfd07b8675a872ded2=gnews