Early Retirees Get $5B Boost from White House
Trying to entice cost-weary employers to keep providing medical coverage to early retirees, the Obama administration is making $5 billion available until the safety net of the new health care law is in place.
Under the program, employers can get reimbursed for up to 80 percent of the cost of medical claims between $15,000 and $90,000 for their early retirees. The government payments can be used to reduce premiums for retirees and their dependents, or by employers to keep their own costs in check. The benefit takes effect June 1.