Health Care and the Early Retirement Plan

Okay, part of Obama Care took effect in August. The Early Retirement Reinsurance Plan allows the employer of a early retiree to recoup some of the costs that they incur while provided health care insurance until Medicare/Medicaid kicks in. ERRP is tax=payer funded.

In other words: John Doe retires from Company X at the age of 50 thanks to his strong Union negotiations. Company X has to provide health care to the retired John Doe. So, Company X gets Health Insurance Group to provide John Doe a health care plan. Company X pays for the insurance and John Doe pays his premium.

One day, John Doe gets in a bad accident and runs up about $25,000 in medical expenses. Health Insurance Group pays all the costs. They assume the risk (as the insurer) and thus they have to pay the costs.

However, under the ERRP, Company X can file a claim with the Federal Health and Human Services ERRP Project and recoup up to 80% of those costs. Costs that Company X never, ever paid. They, in fact, make PROFIT from the tax payer. Pure profit.

Health Insurance Group can not file any such claim. They insure the risk and have to pay the bills.

This rule now applies to any business that signed up for the ERRP program. Many, many cities, schools, universities are members of ERRP. So, your local town is: a) Allowing someone to retire early and maintain health care insurance b) paying the premiums for said health care insurance. and c)turning a profit if that person has an individual claim between $15,000 and $90,000.

WHAT THE F*CK!

Is a company in your town stealing?
http://www.healthcare.gov/news/facts...e_program.html

My wife is learning the "details" of their health insurance tomorrow. So far, we know the deductible is up to $250, and she has to pay 10% coinsurance up to like $500. Her contribution is going up as well.

I do know the health insurance costs for her company went up $5milllion for Pennsylvania employees only this year. Her company is a privately owned medical device manufacturer from Germany (B. Braun)

I teach Financial & Risk Management at a local college, and I had a student ask if I had read the health insurance legislation and if she could get a copy. (She is from Brazil, only been in the states about 4 years). I laughed and said, congress hasn't even read the bill. ;) But I told her she could get it at opencongress.com and report back.