Federal agency implementation of the Patient Protection and Affordable Care Act.

• Author: Berger, Barrie Tabin
• Position: Federal Focus

Since the enactment of the Patient Protection and Affordable Care Act (PPACA, Public Law No. 111-148) in March 2010, the regulatory agencies charged with implementing the new law have published guidance to help define what the law requires of employers, insurers, and participants. The Web site maintained by the Department of Health and Human Service (HHS), in particular, offers a host of information concerning the implementation of the act, including fact sheets, overviews, and frequently asked questions (the HHS Web site is available at www.healthcare.gov). The Internal Revenue Service (IRS) Web site also contains information pertinent to the act's implementation, including an overview of several tax provisions that become effective in the coming months (see http://www.irs.gov/newsroom/ article/0,,id=220809,00.html?portlet=6). (Links to these sites can also be found on the GFOA's federal government relations page at www.gfoa.org.)

The new health-care law contains many provisions of significance to state and local government employers, particularly in their role as plan sponsors. Accordingly, state elected officials, finance officers, and human resource professionals should be closely monitoring all new guidance to determine how the regulations might implicate the insurance provided to employees, its related costs, and any new administrative requirements.

EARLY RETIREE REINSURANCE PROGRAM

HHS has accepted its first round of applicants into the Early Retiree Reinsurance Program. According to HHS, the approved applications represent nearly every sector of the economy, and 26 percent are from state and local governments. A list of approved applicants can be found at http://www. healthcare.gov/news/factsheets/early_ retiree_reinsurance_program.html.

The PPACA created the Early Retiree Reinsurance Program as a bridge to the new state health insurance exchanges, which will begin offering coverage in 2014. The program provides a total of $5 billion in financial assistance to employers, including state and local governments, to help maintain coverage for early retirees aged 55 and older who are not yet eligible for Medicare. Employers that are accepted into the program will receive reimbursement for medical claims for early retirees and their spouses, surviving spouses, and dependents. Savings can be used to reduce employer health-care costs, provide premium relief to workers and families, or both. In September 2010, approved applicants began...