5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.
from Spencer’s Benefits Reports: As of Jan. 20, 2012, the Early Retiree Reinsurance Program (ERRP) has provided $4.73 billion in reinsurance payments to more than 2,800 employers and other sponsors of retiree plans, with an average cumulative reimbursement per plan sponsor of approximately $189,700, according to the Centers for Medicare and Medicaid Services (CMS).
At this time, CMS reported, the ERRP has received requests for reimbursement that exceed the $5 billion in funding appropriated. Therefore, reimbursement requests which exceed the program’s $5 billion will now be held in the order of receipt, pending the availability of funds that may become available as a result of overpayment recoupment activities. CMS will continue to report the status of payments to plan sponsors periodically. In December 2011, the CMS had announced that because the ERRP allocated funds were nearly exhausted, it would deny health care claims incurred after Dec. 31, 2011.
Initial results from a recent survey to gauge plan sponsors’ experience with ERRP funds indicated the following:
The impact of ERRP funds received can be significant, CMS noted. Some survey respondents reported that ERRP reimbursement has been used to offset some (as much as 50 percent) of the premium that would otherwise have been charged to enrollees or offset some (up to 100 percent) of the annual increases in the plan sponsors’ fully-insured premium costs.
“This initial snapshot analysis of reimbursement requests shows that ERRP funds are helping to relieve the high costs of care of patients with serious health conditions, with a large proportion of the reimbursements for claims related to chronic and high-cost conditions such as heart disease, cancer, respiratory disorders, arthritis, and diabetes,” CMS observed. “The funds provided relief from costs of care received from institutional providers, such as hospitals. The largest portion of submitted costs was for items and services delivered in institutional settings, such as hospitals and ambulatory surgery centers."
The survey included responses from 859 plan sponsors, representing 28 percent of those that received funding in 2010 and 2011, and 55 percent of funds disbursed. For more information on the CMS report, Early Retiree Reinsurance Program Status Update, February 2012, visit http://cciio.cms.gov/.
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