Commonwealth among 103 Pennsylvania employers qualified for federal retiree benefit assistance

Governor Edward G. Rendell announced today that the commonwealth is among the 103 Pennsylvania employers accepted into a federal program to help offset the rising health care costs for retirees.

The Early Retiree Reinsurance Program is part of the federal healthcare reform law signed earlier this year. It provides $5 billion in assistance to employers – including businesses, schools, unions, non-profits and state and local governments – to help them maintain coverage for retirees who are not yet eligible for Medicare.

"Rising health care costs are a growing burden for employers and employees alike, and Pennsylvania state government is no exception," said Governor Rendell.  "Over three years, the commonwealth's taxpayers will be relieved of $119 million in retiree health care costs because of our participation. This program will provide much-needed financial relief to the commonwealth, as well as more than 100 other employers throughout the state."

The commonwealth's Retired Employees Health Program (REHP) covers more than 95,000 retirees and dependents. The savings will help offset other costs associated with healthcare reform, such as requiring employers to cover children up to age 26. It will also help the commonwealth continue providing high-quality benefits to retirees.