Early Retiree Reinsurance Program News
Members Seeing Temporary Reductions in Medical Premium Deductions
Certain Members enrolled in LACERS medical plans are seeing temporary reductions in monthly medical premium deductions as a result of LACERS participation in the Federal Early Retiree Reinsurance Program (ERRP).
The ERRP was created by the Patient Protection and Affordable Care Act to help maintain coverage for early retirees (retirees aged 55 – 64) by reimbursing part of early retiree medical claims. LACERS will use the money to reduce retiree medical plan cost increases.
As a result, you may see a reduction in your premium
deduction if you meet all the following conditions as of
You will not see a reduction in your premium deduction if you meet any of the following conditions as of July 2011:
This is a temporary reduction. Once the ERRP funds have been exhausted, Members will resume paying the full amount of their medical premium deductions. This reduction was made possible due to the proactive efforts of LACERS to participate in this Federal program. LACERS applied for this program as soon as the filing period began. We were one of the first applicants to be approved for reimbursement and to pass the savings back to our Members.