In a speech on Tuesday before the leaders of some of the world's largest companies, President Barack Obama is expected to discuss a provision in the health care bill that provides $5 billion to help employers maintain coverage for early retirees, according to an Administration official.

Obama is expected to speak before the Business Council Tuesday, an influential corporate group, whose members include chief executives from a broad array of industries and companies, such as Freeport-McMoRan Copper & Gold Inc. (FCX), Cardinal Health Inc. (CAH) and Goldman Sachs Groups Inc. (GS).

The White House has said Obama will discuss job creation, efforts to spur economic growth and how businesses can aid those two efforts. He will also discuss how provisions in the health care bill can help relieve employers from some costs of early retirees, those 55 or older who don't yet qualify for Medicare, according to an Administration official.

Companies that apply and ultimately get chosen for some of the $5 billion in funding will get reimbursed up to 80% of claim costs that fall between $15,000 and $90,000. The plan, which was supposed to go into effect at the end of June, is now going into effect at the beginning of the month, the official said.

Companies eligible for the money will have to have programs and procedures in place that generate cost-savings for people with expensive or chronic health conditions.

-By Jared A. Favole, Dow Jones Newswires; 202.862.9256; jared.favole@dowjones.com
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