Eye On Washington: Health Care Reform
Updated: July 6, 2010
Last Week in Washington
U.S. Health and Human Services (HHS) Accepts Applications for Early Retiree Reinsurance Program
On June 29, the Department of Health and Human Services’ Office of Consumer Information and Insurance Oversight (OCIIO) announced they will begin accepting applications for the Early Retiree Reinsurance Program (ERRP). The Affordable Care Act appropriated $5 billion to create the program to reimburse employers for medical claims for retirees, ages 55 to 64, who are not eligible for Medicare, including their spouses, surviving spouses, and dependents. The interim rule was effective on June 1, 2010, and applications are expected to be processed on a first-come basis. The program is scheduled to end on January 1, 2014, but many experts believe the funding will run out long before 2014. HHS has posted an information update and FAQ page to help facilitate the application process. A comprehensive list of rules and regulations can be found at the Office of Consumer Information and Oversight.
Secretary Sebelius Announces Pre-Existing Condition Insurance Plan
On July 1, HHS announced the details of the new Pre-Existing Condition Insurance Plan (PCIP), which provides coverage to uninsured legal U.S. residents who are unable to obtain health coverage due to a pre-existing condition. The Affordable Care Act appropriated $5 billion for the Pre-Existing Condition Insurance Plan, which will be administered by the state or the U.S. Department of Health and Human Services. Like the Early Retiree Reinsurance Program, the PCIP program is a transitional program made available until the 2014, when all insurers are required to ban discrimination against adults with pre-existing conditions. According to HHS administrators, 29 states and the District of Columbia have chosen to administer their own plans.
U.S. Congress Adjourns Without Extending COBRA and Unemployment Benefits
On June 30, the U.S. Senate fell two votes short of passing the American Workers, State, and Business Relief Act of 2010 (H.R. 4213), which included a six-month extension of COBRA and unemployment benefits. Senate Republicans rejected the $34 billion bill due the overall costs and impact on the federal deficit. The Senate is expected to resume consideration after the July 4 Holiday recess.
In Case You Missed It:
HHS Early Retiree Reinsurance Application
HHS Early Retiree Reinsurance: Application Dos and Don’ts
HHS Information Pamphlet on the Pre-Existing Condition Insurance Plan
Administration Launches New Health Care Reform Website
ADP is committed to obtaining the most current information on health care reform to help ensure that our Benefits, HR and Payroll outsourcing solutions remain compliant with the changing laws while you focus on your business. This content is subject to change. We will continue to provide updates on this page through our partner, Aon Consulting, as the situation continues to evolve.