RPSPP for health benefits accepted into federal program

Governor Edward G. Rendell announced today that the Retired Pennsylvania State Police Program (RPSPP) for health benefits has been accepted into a federal program to help offset the rising health care costs for retirees.

The Early Retiree Reinsurance Program (ERRP) is part of the federal health care 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.  

"Our state troopers put their lives on the line each day to protect the lives of citizens," said Governor Rendell.  "This federal program will help to protect their retirement benefits against rising health care costs, as well as provide much needed financial relief to more than 100 other employers throughout the state."

Under the ERRP, employers can submit health benefits claims for retirees age 55 and older who are not yet eligible for Medicare, their spouses and dependents for reimbursement of up to 80 percent of the costs between $15,000 and $90,000.  The savings will help offset other costs associated with health care reform - such as requiring employers to cover children up to age 26.  

The RPSPP covers more than 8,000 retirees and dependents, and could receive an estimated $18 million over the next three years.