Florida Accesses Exchange Benefits Before 2014

The state based exchange which will serve as a low-cost alternative to those early retirees between the age of 55 and 65 may be a few years away, but a few companies in Florida have already begun the enjoy the benefits of it.

70 Florida based organizations have qualified for a federal healthcare reform program that will hand out $5 billion to fund coverage for early retiree. The program will end in 2014 when the state based Exchange will come into existence.

The program will increase employer’s and unions’ coverage of retirees who are above 55 but have not turned 65 yet. The funds will reimburse employers for the healthcare costs of the early retirees and their family members.

The firms thathave qualified for the program include the Miami-Dade and Broward school boards; Next-Era Energy, the parent of Florida Power & Light; and the city of Hollywood. However it is expected that most of the funds will be used up large national companies such as the General Motors and General Electrics.

The Washington based Employee Benefit Reserch Institute, however has reservations about the federally sponsored Early Retiree Reinsurance Program. According to the analysis of the Institute, if all eligible retirees take advantage of the program, then the $5 billion funding will run out in the next two years and not last till 2014.

But for the moment the employees of the eligible companies are excited to be able to access affordable insurance through the Reinsurance Program. Scott Clark, risk and benefits officer of Miami-Dade schools, said, “ though we are unsure of what the amount would be for schools, we are just thrilled to be included.”