Gov. Doyle: Urges employers to apply for financial assistance for early retiree health care

Contacts: Laura Smith, Office of the Governor, 608-261-2162

Seth Boffeli, Department of Health Services, 608-266-1683

MADISON — Governor Jim Doyle urged employers today to quickly apply for financial assistance for early retiree health plan benefits due to the program’s limited, first-come, first served funding. Applications for financial assistance for employers that provide affordable health care coverage for retirees are available through the U.S. Department of Health and Human Services’ Early Retiree Reinsurance Program, a $5 billion temporary reinsurance program for employer-based health plans that cover retirees between the ages of 55 to 64.

“This reinsurance program is among the first opportunities for relief for employers facing health care cost increases for their retiree benefits,” Governor Doyle said. “Employers can continue offering coverage to their retired employees with the help of these funds. This is just one part of the national health care reform package that will help more people and businesses in Wisconsin have access to affordable health care coverage.”

The program is providing $5 billion in financial assistance to employers to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare. The program will end when funding is exhausted or in 2014, when Americans will be able to choose from additional coverage options through the health insurance exchanges.

The program will reimburse 80% of annual health care costs between $15,000 and $90,000 for each eligible retiree and for each spouse, surviving spouse, or dependent of an eligible retiree. Under the program, early retiree expenses incurred on or after June 1, 2010 are eligible for reimbursement under the program. In order to qualify for the plan, sponsors must submit a complete application to DHHS. Sponsors must also submit documentation of actual health care benefits in order to receive reimbursement.

Applications for the program, as well as fact sheets and application assistance can be found at: http://www.hhs.gov/ociio

The percentage of large firms providing workers with retiree coverage has dropped from 66 percent in 1988 to 31 percent in 2008.

Governor Doyle created the Office of Health Care Reform to be led by the Secretary of the Department of Health Services and the Commissioner of Insurance. Governor Doyle directed the Office to develop a plan that uses national health care reform to build on Wisconsin’s successful efforts and existing programs; directed that the Office ensure that Wisconsin’s residents and businesses realize the benefits of national health care reform; and directed Office to pursue federal grants to assist in developing a health insurance exchange and implementing any other aspects of health care reform.

Under Governor Doyle’s leadership, Wisconsin has built one of the best systems of health care access through BadgerCare Plus, BadgerCare Plus Core, SeniorCare and FamilyCare. Wisconsin is now America’s health care leader, ranking first for health care quality, second in access to coverage, and providing health care access to every child. Governor Doyle has also positioned Wisconsin as a leader in e-health and quality initiatives. National health reform builds on Wisconsin’s health care successes and will bring $750-980 million in additional federal funding to the state, providing real relief to Wisconsin taxpayers.

For more information on the benefits of national health care reform and Wisconsin’s implementation efforts, visit: http://www.healthcarereform.wisconsin.gov.