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News and Announcements

February 17, 2012

Update on ERRP Payment Processing

Today, the Early Retiree Reinsurance Program (ERRP) published an updated reimbursement report that identified the payments that have been made to Plan Sponsors from the $5 billion appropriated to this temporary program. Funds have been disbursed to a variety of sponsors of employment-based plans, including for-profit companies, schools and educational institutions, unions, State and local governments, religious organizations and other nonprofit Plan Sponsors, to help reduce their health plan benefit costs and those of their plan participants, including early retirees and their spouses, surviving spouses, dependents, and active workers. According to a fact sheet issued by CMS, at least 19 million people are covered by Plan Sponsors that have received funding, 13 million of whom have already directly or indirectly benefited from program reimbursements thanks to ERRP. Click here for more information on the success of the program.


At this time, ERRP has received requests for reimbursement that exceed the $5 billion in funding appropriated. Reimbursement requests which exceed the program's $5 billion will now be held in the order of receipt, pending the availability of funds. As previously reported, Plan Sponsors with reimbursement requests on hold can expect to receive an email notifying them that their reimbursement requests have been placed on hold pending the availability of funds. If you receive such an email, you may call the ERRP Contact Center to obtain updated information on the position of your reimbursement request in the list of held reimbursement requests.


CMS will continue to pay reimbursement requests in the order received until available funds are exhausted. If there are not sufficient funds to pay in its entirety the first reimbursement request that causes the initial exhaustion of the funds available for payment, CMS will partially honor that reimbursement request, and will pay the balance of that reimbursement request if additional funds become available through recoupment of overpayments. In the event that funds become available as a result of overpayment collections, CMS will pay subsequent reimbursement requests in the order of receipt until funds are once again exhausted.


As a reminder, for each plan year for which a Plan Sponsor has been reimbursed with ERRP funds, the requirement to submit a full-replacement Claim List that passes the automated edits (implemented in October 2011) and an associated reimbursement request by March 30, 2012, remains. Absent the timely submission of such an error-free Claim List and a corresponding reimbursement request, CMS will initiate procedures for recoupment of the funds paid to the Plan Sponsor for that plan year. Funds returned to the program as a result of recoupment efforts will be used to pay outstanding reimbursement requests in the order in which they were received.


Plan Sponsors should keep the following program information up to date with the ERRP, as it will assist in the ERRP Center's ability to make prompt payment when funds become available:


  • Responses to application questions

  • Authorized Representative, Account Manager, and Designee contact information (e.g. email address, phone number, etc.)

  • Bank account information


Plan Sponsors should also notify the ERRP Center if they have identified data inaccuracies or changes to previously submitted price concession amounts (such as rebates) in order to obtain instructions on steps necessary to update their data.


Related to ongoing ERRP requirements, CMS has announced its expectation that Plan Sponsors will use ERRP reimbursement funds they have received or will receive, as soon as possible, but in no case later than December 31, 2014. You may wish to view the Common Question on this topic, 800-13, which is posted in the "Use of Reimbursement" section of the Common Questions on www.errp.gov.


Plan Sponsors that have not yet done so should complete the recently issued ERRP program survey. The survey will allow ERRP to collect information about the use of program funds. Plan Sponsors were sent requests to complete the survey on December 1, and can contact the program at 877-574-ERRP for information on completing the survey.



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Page last updated February 21, 2012 at 3:00 PM EST