The Obama administration reports that nearly 2,000 employers and unions have been accepted in the first round of the $5 billion Early Retiree Reinsurance Program created under the health care law.

"We have received applications from more than half of Fortune 500 companies, all major unions, and government entities in all 50 states and the District of Columbia, and we are delighted to be able to notify our first round of successful applicants. As of today, nearly 2,000 employers and unions have been accepted into the program," wrote Commerce Secretary Gary Locke yesterday on the White House blog.

In addition, the Department of Health and Human Services announced that companies such as PepsiCo, Pfizer, GM, and Deutsche Bank Americas have qualified for the program. ERRP aims to help employers provide health insurance to early retirees age 55 or older who are not yet eligible for Medicare.

According to HHS, 32% of applications came from the business sector, 26% from state and local governments, 22% from union sponsors, 14% from schools and other educational institutions, and 5% from non-profit organizations. HHS officials also explain that approved applicants who have submitted accurate claim information can expect to see reinsurance payments in October.

The $5 billion program, created by the Patient Protection and Affordable Care Act, provides financial assistance for employers, including large and small businesses, state and local governments, educational institutions, non-profit organizations, and labor unions that will help retirees and their spouses, surviving spouses, and dependents, as well as active employees and their families, continue to have access to affordable health coverage.

Companies that are approved to participate in the program receive reinsurance for the claims of high-cost retirees and their families. The funds can be used to provide relief to retirees, workers and their families, in the form of lower premiums and cost sharing.

"In these tough economic times, the combination of rising health care costs and lower revenues has made it increasingly difficult for private companies, unions, nonprofits, religious organizations, and state and local governments to provide quality and affordable health coverage for their retirees," says Secretary of Labor Hilda L. Solis.

"And, as Labor Day approaches, I want to recognize those employers who are committed to maintaining adequate benefits for their workers and retirees in spite of these challenges," she adds.

Two new information tools are available for employers and unions interested in the Early Retiree Reinsurance Program: a new website (www.ERRP.gov) and a new hotline (877-574-3777 or 877-574-ERRP).

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