WASHINGTON, DC - Today, after the state of Rhode Island's application was accepted into the Early Retiree Reinsurance Program by the U.S. Department of Health and Human Services (HHS), U.S. Senator Jack Reed (D-RI) announced state government will save $10 million annually in health care costs.

"This program is expected to help the state save $10 million a year, while meeting its obligations to provide health coverage to firefighters, police officers, and other eligible workers," said Reed, a member of the Health, Education, Labor, and Pensions (HELP) Committee.

The Early Retiree Reinsurance Program, which was established under the new health insurance reform law, reimburses private sector and government employers for a portion of the cost of health benefits for early retirees' and their families. The program applies to retirees 55 and older who are not eligible for Medicare but who are covered by employer-sponsored health insurance. It will pay 80 percent of the cost of any claims worth more than $15,000 and less than $90,000.

Eleven other organizations throughout the state are currently participating in the program: Blue Cross & Blue Shield of Rhode Island; Brown University; Care New England; City of Newport; Cookson America, Inc.; Lifespan Corporation; Portsmouth School Department; South Kingstown School Department; Textron Inc.; Town of Portsmouth; and Women & Infants Hospital.

An application to the program submitted by Rhode Island Public Transit Authority (RIPTA) has also been approved. Applications are being approved on a rolling basis.

Created by the Affordable Care Act, the program runs through January 1, 2014, when broader federal reforms such as new health insurance exchanges, take effect. These new exchanges will increase competition in the health insurance marketplace and help keep costs down for businesses and consumers.

Employers who are interested in applying for the Early Retiree Reinsurance Program may visit www.errp.gov

for more information.

3,600 organizations nationwide are currently participating in the program.