Issue Brief – CMS Closing New Applications to ERRP

Alert Date: 4/4/2011


The Centers for Medicare & Medicaid Services (CMS) has announced that effective May 6th, 2011, the

Early Retiree Reinsurance Program (ERRP) will no longer accept new ERRP applications. Due to the

large number of accepted applications, and considering the current rate of reimbursements, the $5 billion

originally allotted to the program is expected to run out before the end of 2012.


As of March 31st, 2011 CMS reported that the ERRP has provided more than $1.8 billion in

reimbursements to over 1300 employers and plans. CMS also reports that most of the individual ERRP

payments made in 2010 were for less than $1 million, and 43-percent of individual payments were for less

than $100,000.


Any employer still wishing to apply to the ERRP must submit an application to CMS on or before 5PM ET

on May 5, 2011. If an application received by the deadline, is missing information or needs clarification

from the sponsor in order to complete the processing of an application, the ERRP Center will contact the

sponsor and provide a limited amount of time for a response.


Employers who have already had an application approved will continue to receive reimbursements under

the program until the $5 billion is exhausted.


For more information on submitting an application, employers can go to

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