Feds to fund 77 Mass. employers' efforts to insure early retirees

Published on Thursday, September 02, 2010

STATE HOUSE NEWS SERVICE

Twenty-seven municipalities, including Boston, Cambridge, New Bedford, Westborough and Arlington, are among the 77 Massachusetts employers slated to receive a share of $5 billion in federal funds aimed at supporting health insurance for early retirees. Announced by the U.S Department of Health and Human Service, the funds were provided through the federal health care law signed by President Obama in February. The funds are aimed at bolstering employers’ ability to subsidize insurance for retirees over 55 years old but too young to qualify for Medicare.

The 77 Massachusetts organizations, which include Boston University, Raytheon, Friendly Ice Cream Corporation, Northeastern University and Welch Foods Inc., were selected along with 2,000 employers nationwide to receive funds. HHS describes the early retiree funds as a “bridge to the new health insurance Exchanges in 2014.” According to the agency, 29 percent of large firms provided health coverage to retirees in 2009, down from 66 percent in 1988. The 77 chosen employers may submit claims retroactive to June 1 and may begin receiving payments by October. Additional applications are still being reviewed.