The Center for Consumer Information & Insurance Oversight
Early Retirees and the Affordable Care Act
For millions of Americans, retiring early (ages 55-64) has meant losing the security and the peace of mind that come with employer-sponsored health insurance. Today, fewer and fewer employers offer coverage for workers who retire early. In fact, only 1 in 3 large employers offers retiree health coverage of any kind.
Buying private insurance is often impossible due to very high premiums or common exclusions on account of pre-existing health conditions like high blood pressure or diabetes.
The Affordable Care Act helps early retirees by controlling costs for them, their families and their former employers, improving the quality of care for everyone, and strengthening Medicare. The Early Retiree Reinsurance Program provides much needed relief – for early retirees and for businesses. Here’s how:
- The Affordable Care Act provides $5 billion in financial assistance to employers to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare, and their spouses, surviving spouses and dependents.
- Employers can use the savings to reduce their own health care costs, provide premium relief to their workers and their workers’ families, or a combination of both.
- This will make it easier for employers to sustain benefits for the workers who made their companies strong--and give retired workers the peace of mind that comes with employer-sponsored health insurance.
This program will bridge the gap until 2014 when the new Health Insurance Exchanges open. Americans with low to middle incomes will be eligible for premium tax credits and cost-sharing reductions to help them purchase coverage in an Exchange. These policies will cover essential benefits and have reasonable cost-sharing.
And, most importantly, they will not be able to refuse to cover you or charge you a premium based on your health status.
Learn more about the Affordable Care Act and Early Retirees
- November 5, 2019 FAQ: Quality Rating Information Bulletin’s (Quality Bulletin’s) Display Guidelines for Direct Enrollment (DE) Entities
- November 1, 2019 Enhanced Direct Enrollment Approved Partners (Updated)
- September 11, 2019 FAQ: Enhanced Direct Enrollment Participation Requirements for Non-Issuer of a Primary EDE Entity Environment
- August 15, 2019 Quality Rating Information Bulletin for Plan Year 2020 Health Insurance Exchanges Quality Rating System (QRS) for Plan Year (PY) 2019: Results at a Glance
- April 18, 2019 CMS-9926-F: Final HHS Notice of Benefit and Payment Parameters for 2020 Final 2020 Letter to Issuers on Federally-facilitated Exchanges Key Dates for Calendar Year 2019: QHP Certification in the FFEs; Rate Review; Risk Adjustment
- April 4, 2019 Guidance on Unified Rate Review Timeline: Timing of Submission of Rate Filing Justifications for the 2019 Filing Year for Single Risk Pool Coverage Effective on or after January 1, 2020
- March 19, 2019 2020 Final Actuarial Value Calculator 2020 Final Actuarial Value Calculator Methodology
- March 6, 2019 CMS-9921-NC: Request for Information Regarding the Sale of Individual Health Insurance Coverage Across State Lines Through Health Care Choice Compacts
- February 28, 2019 Section 1332 Pass-through Funding Tools and Resources