Baltimore County Gets Share of Soon-to-be-Discontinued Federal Program for Retirees

Baltimore County received nearly 20 percent of all federal money handed out to Maryland companies and governments under an early retiree program that is part of the recently passed federal health care legislation.

The county received nearly $1.8 million of the nearly $9.2 million distributed to Maryland companies and governments under the Early Retirement Reinsurance Program.

Baltimore County is one of about 1,300 corporations and state and local governments in 50 states to receive about $1.8 billion in the last year, according to the Centers for Medicare & Medicaid Services, which administers the program.

The program was created as part of sweeping federal health care legislation passed in March 2010.

Money from the $5 billion fund is meant to be used to offset health care costs for early retirees who are not yet eligible for Medicaid.

The county's share is slightly higher than the current national average.

As of March 17, 43 percent of the individual payments were for less than $100,000. Most, according to the release, were for less than $1 million.

The fund, which was supposed to be available through 2014, is quickly running out of money. Last week, the federal government announced it would stop accepting applications on May 5.

“We are thrilled with the success of the Early Retiree Reinsurance Program and excited that we are helping maintain coverage and moderate costs for millions of American workers and retirees,” said Steve Larsen, director of the Center for Consumer Information and Insurance Oversight at the agency, which administers the program, according to a statement. “Insurance for older Americans is over four times more expensive than coverage for young adults and we are happy that this program is helping employers maintain coverage."

Larsen was Maryland Insurance Agency commissioner. He also has connections to Baltimore County.

In 2004 Larsen was hired by then-County Executive Jim Smith, a Democrat, to produce a report that some at the time believed was politically motivated.

Larsen, a Democrat, was appointed to head the Maryland Insurance Administration by Gov. Parris N. Glendening.

In 2004, Smith hired Larsen to examine the insurance regulatory agency's and Al Redmer's response to the flooding resulting from Hurricane Isabel.

Redmer, a Republican, was commissioner at the time of the storm. He was appointed to run the agency by then-Gov. Robert Ehrlich.

The county paid Larsen $24,000 on a contract it never bid out—$1,000 under the limit that would have also triggered a review by the County Council.