Saturday, September 22 , 2018, 8:53 am | Fog/Mist 60º

 
 
 
 

Capps: California Receives $65 Million from Early Retiree Reinsurance Program

The City of Santa Barbara and Santa Barbara County schools are among the beneficiaries

Rep. Lois Capps, D-Santa Barbara, announced Friday that California received nearly $65 million in funding from the Early Retiree Reinsurance Program to reduce costs for both health-plan sponsors and retirees in 2010.

The Early Retiree Reinsurance Program was created by the Affordable Care Act to help early retirees ages 55 to 64 not yet eligible for Medicare keep their employer-sponsored insurance. Too often, increasing costs force employers to drop retiree coverage. The Early Retiree Reinsurance program will reimburse employment-based plans for up to 80 percent of claim costs for each early retiree, his or her spouse, or his or her dependents.

As of Dec. 31, 2010, 518 health-plan sponsors in California had been approved for participation in the program, and have collectively received nearly $65 million in funding.

The following is a sample of program sponsors that have been approved for participation in the Early Retiree Reinsurance Program in California’s 23rd Congressional District: Agilent Technologies in Ventura County, Allergan Inc. in Goleta, Santa Barbara County, the City of Santa Barbara, the City of Ventura, Guadalupe Union School District, Santa Barbara County Education Office, the Santa Barbara Community College District, the Santa Maria-Bonita School District and the Ventura County Schools Business Services Authority.

In addition, California’s Public Employees Retirement System was awarded more than $57 million to reduce costs for early retirees, their spouses and dependents. CALPERS was able to leverage the funding from ERRP to lessen 2011 premium increases by 3 percent, saving up to $200 million and benefiting more than 1.1 million employees in California.

“The verdict is in, and the Early Retiree Reinsurance Program has been a clear success for California and the 23rd Congressional District,” Capps said. “Financial resources provided by the program have reduced costs for state and local governments, private companies and, most important, retirees.

“Given the fiscal crises facing our state and local governments, this program provides much-needed resources to help them balance their budgets, lessen cuts to important programs and keep taxes low. The individual insurance market is often prohibitively expensive for early retirees who are not yet eligible for Medicare. This program will help guarantee that these people won’t be dropped from their current plans, bridging the gap between now and 2014 when the health insurance exchanges are fully operational.”

— Ashley Schapitl is press secretary for Rep. Lois Capps, D-Santa Barbara.

 

Support Noozhawk Today

You are an important ally in our mission to deliver clear, objective, high-quality professional news reporting for Santa Barbara, Goleta and the rest of Santa Barbara County. Join the Hawks Club today to help keep Noozhawk soaring.

We offer four membership levels: $5 a month, $10 a month, $25 a month or $1 a week. Payments can be made using a credit card, Apple Pay or Google Pay, or click here for information on recurring credit-card payments and a mailing address for checks.

Thank you for your vital support.

Become a Noozhawk Supporter

First name
Last name
Email
Select your monthly membership
Or choose an annual membership
×

Payment Information

Membership Subscription

You are enrolling in . Thank you for joining the Hawks Club.

Payment Method

Pay by Credit Card:

Mastercard, Visa, American Express, Discover
One click only, please!

Pay with Apple Pay or Google Pay:

Noozhawk partners with Stripe to provide secure invoicing and payments processing.
You may cancel your membership at any time by sending an email to .(JavaScript must be enabled to view this email address).

  • Ask
  • Vote
  • Investigate
  • Answer

Noozhawk Asks: What’s Your Question?

Welcome to Noozhawk Asks, a new feature in which you ask the questions, you help decide what Noozhawk investigates, and you work with us to find the answers.

Here’s how it works: You share your questions with us in the nearby box. In some cases, we may work with you to find the answers. In others, we may ask you to vote on your top choices to help us narrow the scope. And we’ll be regularly asking you for your feedback on a specific issue or topic.

We also expect to work together with the reader who asked the winning questions to find the answer together. Noozhawk’s objective is to come at questions from a place of curiosity and openness, and we believe a transparent collaboration is the key to achieve it.

The results of our investigation will be published here in this Noozhawk Asks section. Once or twice a month, we plan to do a review of what was asked and answered.

Thanks for asking!

Click Here to Get Started >

Reader Comments

Noozhawk is no longer accepting reader comments on our articles. Click here for the announcement. Readers are instead invited to submit letters to the editor by emailing them to [email protected]. Please provide your full name and community, as well as contact information for verification purposes only.

Daily Noozhawk

Subscribe to Noozhawk's A.M. Report, our free e-Bulletin sent out every day at 4:15 a.m. with Noozhawk's top stories, hand-picked by the editors.

Sign Up Now >