To: All enrolled participants in the Cooperating School District Group Insurance Trust (CSD) Medical Plan
From: CSD Medical Insurance Trust
Date: January 1, 2011
SUBJECT: ERRP Federal Reinsurance Program
By law, the CSD Trust is required to provide you with the below information regarding the ERRP. THERE IS NO ACTION NECESSARY ON YOUR PART.
If you should have any questions regarding this notice, please contact the CSD Call Center at 1-866-783-9384.
You are a plan participant, or are being offered the opportunity to enroll as a plan participant, in an employment-based health plan that is certified for participation in the ERRP. The ERRP is a Federal program that was established under the Affordable Care Act. Under the ERRP, the Federal government reimburses a plan sponsor, (CSD Trust) of an employment-based health plan for some of the costs of health care benefits paid on behalf of, or by early retirees and certain family members of early retirees participating in the employment-based plan. By law, the program expires on January 1, 2014.
Under the ERRP, your plan sponsor may choose to use any reimbursements it receives from this program to reduce or offset increases in plan participants' premium contributions, co-payments, deductibles, co-insurance, or other out-of-pocket costs. If the plan sponsor chooses to use the ERRP reimbursements in this way, you, as a plan participant, may experience changes that may be advantageous to you, in your health plan coverage terms and conditions, for so long as the reimbursements under this program are available and this plan sponsor chooses to use the reimbursements for this purpose. A plan sponsor may also use the ERRP reimbursements to reduce or offset increases in its own costs for maintaining your health benefits coverage, which my increase the likelihood that it will continue to offer health benefits coverage to its retirees and employees and their families.
If you have received this notice you are responsible for providing a copy of this notice to your family members who are participants in this plan.