Early Retiree Reinsurance Program, 16551 [2012-6728]
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Federal Register / Vol. 77, No. 55 / Wednesday, March 21, 2012 / Notices
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Centers for Medicare & Medicaid
Services
[CMS–9996–N3]
Early Retiree Reinsurance Program
Centers for Medicare &
Medicaid Services (CMS), HHS.
ACTION: Notice.
AGENCY:
This notice establishes a
timeframe by which plan sponsors
participating in the Early Retiree
Reinsurance Program (ERRP) are
expected to use ERRP reimbursement
funds. Sponsors are expected to use
such funds as soon as possible, but not
later than December 31, 2014.
DATES: Effective Date: This notice is
effective March 16, 2012.
FOR FURTHER INFORMATION CONTACT:
David Mlawsky, (410) 786–6851.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
erowe on DSK2VPTVN1PROD with NOTICES
The Patient Protection and Affordable
Care Act (Pub. L. 111–148, enacted on
March 23, 2010) (the Affordable Care
Act), included a provision that
established the temporary Early Retiree
Reinsurance Program (ERRP) which
provides reimbursement to eligible
sponsors of employment-based plans for
a portion of the costs of providing
health coverage to early retirees (and
eligible spouses, surviving spouses, and
dependents of such retirees), during the
period beginning on the date on which
the program is established, and ending
on January 1, 2014. Section 1102(a)(l) of
the Affordable Care Act required the
Secretary to establish the program
within 90 days of enactment of the law
(by June 21, 2010). In the May 5, 2010
Federal Register (75 FR 24450), we
published an interim final regulation
with comment period, implementing the
program as of June 1, 2010. Section
1102(e) of the Affordable Care Act
appropriates funding of $5 billion for
the temporary program.
Consistent with section 1102(c)(4) of
the Affordable Care Act, the rule at 45
CFR 149.200 states:
A sponsor must use the proceeds under
this program to—(1) reduce the sponsor’s
health benefit premiums or health benefit
costs, (2) reduce health benefit premium
contributions, copayments, deductibles,
coinsurance, or other out-of-pocket costs, or
any combination of these costs, for plan
participants, or (3) reduce any combination
of the costs in (a)(1) and (a)(2) of this section.
Proceeds under this program must not be
used as general revenue for the sponsor.
VerDate Mar<15>2010
15:15 Mar 20, 2012
Jkt 226001
We have published several guidance
documents that further clarify this
section of the rule (see the Guidance on
Complying with the Prohibition on
Using Early Retiree Reinsurance
Program Reimbursements as General
Revenue under the Regulations and
Guidance section of www.errp.gov, and
the Common Questions under the Use of
Reimbursement section at
www.errp.gov).
We have provided the available ERRP
funds to reimburse plan sponsors’
eligible early retiree health care costs
with the expectation that plan sponsors
will use the funds in an allowable
manner, as outlined in 45 CFR 149.200,
as soon as possible after receiving ERRP
funds. In February 2012, we released
Common Question 800–13, which
provided the date, December 31, 2014,
by which plan sponsors are expected to
use the received funds.
II. Provisions of This Notice
Section 1102(c)(4) of the Affordable
Care Act, immediately following its
discussion of how ERRP
reimbursements may be used, states:
‘‘The Secretary shall develop a
mechanism to monitor the appropriate
use of such payments by such entities.’’
We believe that one necessary
component of such a mechanism is a
deadline by when plan sponsors are
expected to use ERRP reimbursements.
Thus, one of the Common Questions we
have published to clarify the ERRP rule
at 45 CFR 149.200 sets forth our
expectation as to when a plan sponsor
that has received ERRP reimbursement
will use that reimbursement (Common
Question 800–13). This notice reiterates
and formalizes our expectation that a
sponsor will use ERRP reimbursement
funds as soon as possible, but not later
than December 31, 2014. We believe this
deadline is consistent with the January
1, 2014 statutory end date of the ERRP,
and also affords plan sponsors the
flexibility and time they may need in
order to appropriately use ERRP
reimbursement.
Common Question 800–13 also states,
and we reiterate in this notice, that a
sponsor is not required to use ERRP
reimbursement funds by the end of the
plan year in which they are received.
Sponsors may use ERRP reimbursement
funds in a manner permitted under the
statute, regulation, and other ERRP
program guidance.
III. Collection of Information
Requirements
This document does not impose any
new information collection and
recordkeeping requirements.
Consequently, it need not be reviewed
PO 00000
Frm 00037
Fmt 4703
Sfmt 4703
16551
by the Office of Management and
Budget under the authority of the
Paperwork Reduction Act of 1995.
However, the information collection
requirements associated with the ERRP
are currently approved under OMB
control number 0938–1087, with an
expiration date of September 30, 2014.
Authority: Sections 1102(a)(l) and
1102(c)(4) of the Affordable Care Act (42
U.S.C. 18002(a)(l) and(c)(4)).
Dated: March 13, 2012.
Marilyn Tavenner,
Acting Administrator, Centers for Medicare
& Medicaid Services.
[FR Doc. 2012–6728 Filed 3–16–12; 11:15 am]
BILLING CODE 4120–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
[Docket No. FDA–2012–N–0001]
Standards for Private Laboratory
Analytical Packages and Introduction
to Laboratory Related Portions of the
Food Modernization Safety Act for
Private Laboratory Managers
AGENCY:
Food and Drug Administration,
HHS.
ACTION:
Notice of meetings.
The Food and Drug Administration
(FDA) is announcing two meetings
entitled ‘‘Standards for Private
Laboratory Analytical Packages and
Introduction to Laboratory Related
Portions of the Food Modernization
Safety Act for Private Laboratory
Managers.’’ The topic to be discussed is
the quality standards expected in all
analytical packages and an introduction
to sections of the Food Safety
Modernization Act of January 6, 2011,
that affect laboratories.
Date and Time: The meetings will be
held on April 3, 2012, from 1 p.m. to
4:30 p.m. in Bothell, WA, and on April
5, 2012, from 1 p.m. to 4:30 p.m. in
Oakland, CA.
Location: The meeting in Bothell,
WA, will be held at the FDA Seattle
District Office, 22201 23rd Dr. SE.,
Bothell, WA 98021. The Oakland, CA,
meeting will be held in the R. Dellums
Federal Building, Conference Room
A/B, 2nd Floor North, 1301 Clay St.,
Oakland, CA 94612.
Contact: R.V. Asmundson, Food and
Drug Administration, 1301 Clay St.,
Suite 1180N, Oakland, CA 94612–5217,
510–287–2715, FAX: 510–287–3739,
email: rod.asmundson@fda.hhs.gov.
Registration: Send registration
information (including name, title, firm
E:\FR\FM\21MRN1.SGM
21MRN1
]]>Agencies
[Federal Register Volume 77, Number 55 (Wednesday, March 21, 2012)]
[Notices]
[Page 16551]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-6728]
[[Page 16551]]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services
[CMS-9996-N3]
Early Retiree Reinsurance Program
AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice establishes a timeframe by which plan sponsors
participating in the Early Retiree Reinsurance Program (ERRP) are
expected to use ERRP reimbursement funds. Sponsors are expected to use
such funds as soon as possible, but not later than December 31, 2014.
DATES: Effective Date: This notice is effective March 16, 2012.
FOR FURTHER INFORMATION CONTACT: David Mlawsky, (410) 786-6851.
SUPPLEMENTARY INFORMATION:
I. Background
The Patient Protection and Affordable Care Act (Pub. L. 111-148,
enacted on March 23, 2010) (the Affordable Care Act), included a
provision that established the temporary Early Retiree Reinsurance
Program (ERRP) which provides reimbursement to eligible sponsors of
employment-based plans for a portion of the costs of providing health
coverage to early retirees (and eligible spouses, surviving spouses,
and dependents of such retirees), during the period beginning on the
date on which the program is established, and ending on January 1,
2014. Section 1102(a)(l) of the Affordable Care Act required the
Secretary to establish the program within 90 days of enactment of the
law (by June 21, 2010). In the May 5, 2010 Federal Register (75 FR
24450), we published an interim final regulation with comment period,
implementing the program as of June 1, 2010. Section 1102(e) of the
Affordable Care Act appropriates funding of $5 billion for the
temporary program.
Consistent with section 1102(c)(4) of the Affordable Care Act, the
rule at 45 CFR 149.200 states:
A sponsor must use the proceeds under this program to--(1)
reduce the sponsor's health benefit premiums or health benefit
costs, (2) reduce health benefit premium contributions, copayments,
deductibles, coinsurance, or other out-of-pocket costs, or any
combination of these costs, for plan participants, or (3) reduce any
combination of the costs in (a)(1) and (a)(2) of this section.
Proceeds under this program must not be used as general revenue for
the sponsor.
We have published several guidance documents that further clarify
this section of the rule (see the Guidance on Complying with the
Prohibition on Using Early Retiree Reinsurance Program Reimbursements
as General Revenue under the Regulations and Guidance section of
www.errp.gov, and the Common Questions under the Use of Reimbursement
section at www.errp.gov).
We have provided the available ERRP funds to reimburse plan
sponsors' eligible early retiree health care costs with the expectation
that plan sponsors will use the funds in an allowable manner, as
outlined in 45 CFR 149.200, as soon as possible after receiving ERRP
funds. In February 2012, we released Common Question 800-13, which
provided the date, December 31, 2014, by which plan sponsors are
expected to use the received funds.
II. Provisions of This Notice
Section 1102(c)(4) of the Affordable Care Act, immediately
following its discussion of how ERRP reimbursements may be used,
states: ``The Secretary shall develop a mechanism to monitor the
appropriate use of such payments by such entities.'' We believe that
one necessary component of such a mechanism is a deadline by when plan
sponsors are expected to use ERRP reimbursements. Thus, one of the
Common Questions we have published to clarify the ERRP rule at 45 CFR
149.200 sets forth our expectation as to when a plan sponsor that has
received ERRP reimbursement will use that reimbursement (Common
Question 800-13). This notice reiterates and formalizes our expectation
that a sponsor will use ERRP reimbursement funds as soon as possible,
but not later than December 31, 2014. We believe this deadline is
consistent with the January 1, 2014 statutory end date of the ERRP, and
also affords plan sponsors the flexibility and time they may need in
order to appropriately use ERRP reimbursement.
Common Question 800-13 also states, and we reiterate in this
notice, that a sponsor is not required to use ERRP reimbursement funds
by the end of the plan year in which they are received. Sponsors may
use ERRP reimbursement funds in a manner permitted under the statute,
regulation, and other ERRP program guidance.
III. Collection of Information Requirements
This document does not impose any new information collection and
recordkeeping requirements. Consequently, it need not be reviewed by
the Office of Management and Budget under the authority of the
Paperwork Reduction Act of 1995. However, the information collection
requirements associated with the ERRP are currently approved under OMB
control number 0938-1087, with an expiration date of September 30,
2014.
Authority: Sections 1102(a)(l) and 1102(c)(4) of the Affordable
Care Act (42 U.S.C. 18002(a)(l) and(c)(4)).
Dated: March 13, 2012.
Marilyn Tavenner,
Acting Administrator, Centers for Medicare & Medicaid Services.
[FR Doc. 2012-6728 Filed 3-16-12; 11:15 am]
BILLING CODE 4120-01-P
