Jeff Bingaman United States Senator from New Mexico

U.S. SENATOR Jeff Bingaman

Wednesday, September 1, 2010

Contact Senator Bingaman's Office:

Jude McCartin
Maria Najera
703 Hart Building
United States Senate
Washington, DC 20510
(202) 224-5521

N.M. Employers to Receive Help in Covering Health Insurance Costs for Early-Retirees

WASHINGTON – U.S. Senator Jeff Bingaman today said four major New Mexico employers will be receiving help in covering health care costs of early retirees who are not yet eligible for Medicare.

Under the health insurance reform law, the U.S. Department of Health and Human Services is able to provide reimbursement for medical claims for early retirees and their spouses, surviving spouses, and dependents.  The savings to the employer can be used to provide premium relief to workers and families.

Applicants who were approved into the program receive reinsurance for the claims of high-cost retirees and their families (80 percent of the costs from $15,000 to $90,000). The program ends on January 1, 2014 when state health insurance "exchanges" are up and running.   In the health exchanges, early retirees – and others -- will be able to purchase affordable insurance and will not be required to pay more because of pre-existing conditions and other considerations.

Four New Mexico businesses have been approved for HHS assistance.  They are:

• Los Alamos National Security, LLC
• PNM Resources, Inc.
• Sandia Corporation
• University of New Mexico

"The goal of this new law is to cut health care costs, and to make health insurance affordable for more Americans.  Already four major New Mexico employers are getting assistance that will lower their costs and their employees' costs," Bingaman said.  "This is one of many steps this new law will take to improve access to health care in our state."