USA Today Examines Early Retirees’ Access to Health Insurance
USA Today on Tuesday examined access to health insurance in the second part of a five-part series about the personal impact of baby boomers leaving the work force. Although U.S. residents are working longer, most still retire before they are eligible for Medicare at age 65, USA Today reports. The median age for retirement in 2006 was 64 for men and 61.9 for women, according to the American Academy of Actuaries. U.S. residents are eligible for Social Security benefits at age 62. According to USA Today, "Finding a way to bridge that gap -- eligible for Social Security but not for Medicare -- will be the hardest and costliest challenge for many of the boomers who want to retire early or are forced out of their jobs."In the past, retirees often have relied on employer-sponsored health coverage, USA Today reports. In 2007 one-third of large employers provided retiree health benefits down from 66% in 1988, according to a survey by the Kaiser Family Foundation and the Health Research & Education Trust. The survey also indicated that 5% of employers with fewer than 200 employees offered retiree health benefits in 2007.
In addition, USA Today reports that many of the companies that continue to offer coverage to retirees are reducing benefits or requiring them to pay more out-of-pocket costs.
People who retire early and do not have employer-sponsored coverage might need to purchase coverage until they become eligible for Medicare, but "individual policies for people in their 60s can be hugely expensive, with premiums topping $900 a month for family coverage," USA Today reports. In addition, people with health conditions might not be able to find coverage "at any price," according to USA Today. David Certner, director of federal affairs for AARP, said some early retirees who do not have employer-sponsored coverage are "just hanging on until they're eligible for Medicare." He said, "Either they can't afford (health insurance), or they can't get it. They're hoping nothing happens before they hit age 65." According to AARP, about 16% of individuals ages 50 to 64 are uninsured.
USA Today also highlights different options retirees have to obtain insurance, including joining a spouse or partner's employer plan, inquiring whether the retiree's employer allows retirees to purchase coverage through the company plan, obtaining coverage through COBRA, purchasing coverage through membership organizations or purchasing a private plan (Block, USA Today, 1/15). This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
