Texas Employers Take Part in Early Retiree Reinsurance Program

Spiraling health care costs make it increasingly difficult for employers to maintain health insurance coverage for employees and retirees. The new federal health reform law includes several new programs and approaches designed to make coverage more affordable and support employer-sponsored insurance. One example is the new Early Retiree Reinsurance Program, a temporary program which will help employers maintain coverage for early retirees until coverage expansions and health insurance exchange begin in 2014.

Yesterday, the U.S. Health and Human Services Department released the following information on the first round of Texas employers that are taking part in the Early Retiree Reinsurance Program.

The Early Retiree Reinsurance Program provides $5 billion in financial assistance to employers and unions to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare. Businesses, other employers, and unions that are accepted into the program will receive reimbursement for medical claims for early retirees and their spouses, surviving spouses, and dependents. Savings can be used to reduce employer health care costs, provide premium relief to workers and families, or both. Applicants who are approved into the program receive reinsurance for the claims of high-cost retirees and their families (80 percent of the costs from $15,000 to $90,000). The program ends on January 1, 2014 when State health insurance Exchanges are up and running.

HHS has approved the following sponsors from Texas. More applications are being approved each day.

• Alcon Laboratories, Inc.
• Alon USA Energy, Inc.
• American Airlines Inc.
• Anadarko Petroleum Corporation
• AT&T Inc
• Atmos Energy Corporation
• Babcock and Wilcox Technical Services Pantex, LLC
• Basell North America, Inc.
• Bexar County Hospital District
• BHP Hawaii, Inc
• BJ Services Company, U.S.A.
• Boy Scouts of America
• Broken Hill Proprietary (USA) Inc.
• Cameron County
• CEMEX, Inc.
• CenterPoint Energy, Inc.
• City of Arlington
• City of Austin
• City of Beaumont
• City of Bryan
• City of Corpus Christi
• City of Dallas
• City of El Paso
• City of Fort Worth
• City of Garland
• City of Grand Prairie
• City of Grapevine
• City of Greenville
• City of Houston
• City of Laredo
• City of Lewisville Health Benefit Trust
• City of Midland
• City of North Richland Hills
• City of Plano
• City of Port Arthur
• City of San Angelo
• City of Tyler
• City of Waco
• Comerica Incorporated
• County of Galveston
• County of Jefferson
• Dresser Inc
• Dresser-Rand Company
• Ector County Hospital District
• El Paso Corporation
• Employees Retirement System of Texas
• Enbridge Employee Services, Inc.
• Energy Future Holdings Corp.
• First Victoria National Bank
• Fluor Corporation
• GuideStone Financial Resources of the Southern Baptist Convention
• H. E. Butt Grocery Company
• Harris County
• Hewlett-Packard Company
• Holly Corporation
• Houston Refining LP
• Huntsman International LLC
• Lyondell Chemical Company
• Midland County
• Millennium America Holdings Inc.
• National Oilwell Varco, L.P.
• NCH Corporation
• Port Terminal Railroad Association Employee Benefit Plan
• Public Utilities Board of the City of Brownsville,
• Rio Algom Mining LLC
• Rowan Companies, Inc.
• RRI Energy, Inc.
• Sabre Inc.
• San Antonio Water System
• Sasol North America Inc.
• Scott and White Memorial Hospital
• Shell Oil Company
• Sky Chefs, Inc.
• Solvay America, Inc.
• South Texas Project Nuclear Operating Company
• Southern Methodist University
• Southwest Airlines Co.
• SuperMedia Inc.
• Sysco Corporation
• Teacher Retirement System of Texas
• Temple-Inland Inc.
• Texas Instruments Incorporated
• The Coteau Properties Company
• The Falkirk Mining Company
• The North American Coal Corporation
• The Sabine Mining Company
• The Texas A&M University System
• TMC Group Health & Welfare Plan
• TML Intergovernmental Employee Benefits Pool
• Total Finance USA, Inc.
• University of Texas at Austin, Office of Accounting
• Valero Energy Corporation
• Zachry Group, LLC
• Zachry Holdings, Inc.