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78 employers get aid to pay for insurance

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By Josh Sweigart, Staff Writer 7:35 PM Tuesday, August 31, 2010

SPRINGFIELD — The U.S. Department of Health and Human Services Tuesday, Aug. 31, announced 78 Ohio employers were accepted into the first round of a program meant to bridge the gap until provisions of recent federal healthcare reforms go into effect.

The Early Retiree Reinsurance Program provides $5 billion nationally in financial assistance to employers and unions to help them maintain coverage of early retirees age 55 and older who are not yet eligible for Medicare.

The first round of applicants includes Marathon Oil Company, owner of Clark County-based Speedway SuperAmerica, as well as other businesses, governments, educational institutions, nonprofits and unions. They will begin to receive reimbursements for employee claims in the fall.

Applications for the program are still being accepted, according to a Health and Human Services release.

“Many Americans who retire before they are eligible for Medicare see their life savings disappear because of medical bills and exorbitant rates in the individual health insurance market,” said Health and Human Services Secretary Kathleen Sebelius. “(This) program will make it a little easier for employers to provide high-quality health benefits to their retirees as we work to put in place market reforms to lower costs for all.”

The program was created by the Affordable Care Act to bridge the gap until the new health insurance exchanges are created in 2014.

The percentage of large firms providing retirees with health coverage has dropped from 66 percent in 1988 to 29 percent in 2009, according to the release, and health insurance premiums for older Americans are more than four times more expensive than for younger adults.

Contact this reporter at (937) 328-0374 or jsweigart@coxohio.com.

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