Employers: are you leaving money on the table?

March 23, 2011

Back in May 2010, HHS announced a $5 billion program to help employers fund health care for their early retirees – people who are not yet eligible for Medicare. The fund was much talked about in the news, and pundits predicted it would all be gone within two years if not before. That meant it wouldn’t last until 2014, when early retirees can get guaranteed issue insurance on state health benefit exchanges.

Well, it looks like those predictions may have been a little pessimistic. To date, according to U.S. News & World Report, only $535 million of that $5 billion has been paid out. State and local governments and non-profits make up the majority of employers who’ve applied for and been granted funds.

At this rate the money will last for ten years. (If you’re interested in participating, go here for details.) So what about it, employers? Why has so little of this fund been used?

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