Large Ohio companies getting ACA subsidies

Under a little-know provision in the Affordable Care Act, some of the largest employers in Ohio are getting federal assistance to subsidize health insurance coverage for early retirees (Source: “Big firms collect health subsidies,” Mansfield News Journal, Aug. 29, 2011).

Among the companies that are participating in the $5 billion Eary Retirement Reinsurance Program are Kroger Co., American Electric Power and Procter & Gamble. 

Obama Administration officials said the program grew out of concern that early retirees would lose health insurance unless their employers got subsidies. According to the Kaiser Family Foundation, only 28 percent of large firms offered retiree health coverage last year, down from 66 percent in 1988.

However, critics point to the fact that companies didn’t have to demonstrate financial need to apply. The only requirements were that they have a health care program for early retirees and maintain those benefits until 2014.