What companies must do to have any chance of collecting early retiree reinsurance

Are you planning to apply for the early retiree reinsurance under PPACA? If so, you should be aware of this requirement.

Employers that do not already have a disease management program in place now may be left out in the cold.

The draft application for reinsurance money reiterates that plan sponsors cannot participate in the ERRP unless, as of the date of the application, the plan has in place programs and procedures that have generated or have the potential to generate cost savings for participants with chronic and high-cost conditions.

In addition, the application requires employers to document how the funds will be used to defray costs–by reducing the health benefit or premium costs for the plan sponsor; reducing the premiums and other health care costs for plan participants; or through a combination of both of these approaches.