Before you as an employer get too excited by the provision in the House just released health care reform bill related to subsidizing large claims for early retirees, it is not what you may think. Here is a key point in the legislation
“(3) USE OF PAYMENTS.—Amounts paid to a participating employment-based plan under this subsection shall be used to lower the costs borne directly by the participants and beneficiaries for health benefits provided under such plan in the form of premiums, co-payments, deductibles, co-insurance, or other out-of-pocket costs. Such payments shall not be used to reduce the costs of an employer maintaining the participating employment-based plan.”
