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HHS Establishes Timeframes for Use of ERRP Funds
Practical Law Legal Update 0-518-5084 (Approx. 2 pages)
HHS Establishes Timeframes for Use of ERRP Funds
by PLC Employee Benefits & Executive Compensation
| Published on 20 Mar 2012 • USA (National/Federal) |
The Department of Health and Human Services (HHS) issued a notice requiring plan sponsors to use their Early Retiree Reinsurance Program (ERRP) funds as soon as possible, but by December 31, 2014, at the latest.
HHS issued a notice requiring employers to use their Early Retiree Reinsurance Program (ERRP) funds as soon as possible, but no later than December 31, 2014. The ERRP is a temporary program under the Affordable Care Act (ACA) that reimburses eligible sponsors of employment-based plans for a portion of health coverage costs for early retirees, eligible spouses and dependents. Plan sponsors may only use the funds to reduce:
- The plan sponsor's health benefit premiums or costs.
- Plan participants' out of pocket health benefit premium costs.