Health reform could save R.I. $10M annually

WASHINGTON – Rhode Island could save $10 million a year from its participation in the federal Early Retiree Reinsurance Program, U.S. Sen. Jack Reed announced Nov. 4.
The Early Retiree Reinsurance Program, established under the new health reform law, reimburses private sector and government employers for a portion of the cost of health benefits for early retirees’ and their families. The program applies to retirees 55 and older who are not eligible for Medicare but who are covered by employer-sponsored health insurance. It will pay 80 percent of the cost of any claims worth more than $15,000 and less than $90,000.
“This program is expected to help the state save $10 million a year, while meeting its obligations to provide health coverage to firefighters, police officers and other eligible workers,” said Reed.
Eleven other employers throughout the state are currently participating in the program: Blue Cross & Blue Shield of Rhode Island; Brown University; Care New England; city of Newport; Cookson America Inc.; Lifespan; Portsmouth School Department; South Kingstown School Department; Textron Inc.; town of Portsmouth; and Women & Infants Hospital.
An application to the program submitted by R.I. Public Transit Authority has also been approved. Applications are being approved on a rolling basis. &#8226

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