The following change was made to the Finance Committee markup yesterday. If it remains in any final legislation, there could be a significant benefit for employers offering retiree coverage. It may also mean an immediate positive impact on an employers FAS106 expense.
Hey, if they have another $5 billion to throw around, why not give it to the good guys?
To Modify the Chairman’s Mark
On page 13 of the Mark:To Accept with Modification Kerry-Stabenow Amendment #C7:AmendTitle I, Subtitle A to add $5 billion to reinsurance program to apply to employer-sponsored retiree coverage. The program would reimburse any eligible employers or insurers 80 percent of claims between $15,000 and ends at $90,000. The thresholds would rise each year based on the Medical Care Component of the CPI-U, rounded to the nearest multiple of $1,000. It would reinsure only the claims for individual between the ages 55 to 64 year old who are not active workers or dependents of active workers and who are not Medicare eligible. Eligible employers are those offering coverage that is appropriate for a mature population between 55 and 64, offers preventive benefits, has demonstrated programs to generate cost savings for those with chronic and high-cost conditions, and can show actual cost of medical claims.
– Change the effective date for this subtitle to July 1, 2013 unless otherwise indicated.
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