subject: health insurance law [print this page] health insurance law
The recently passed health insurance law attempts to do quite a bit to solve these problems: age rating will be limited to just two or three times the rates charged to a younger person in similar health, and insurers will be forbidden from denying coverage to people with pre-existing conditions.
However, many retirees with existing former employer-sponsored health benefits have been worried that the legislation will negatively impact their current insurance, or eliminate it altogether. Public support for healthcare reform has lagged as a result. Indeed, employers have been looking into ways to save money while implementing the law's provisions. New requirements--such as the one that requires them to cover adult dependent children of employees until the age of 27--will add more expenses to their budgets. Insurance for retirees may appear like a good place for cuts.
In order to avoid this, the United States government has agreed to provide subsidies. Up to $5 billion worth of medical bills will be subsidized for those companies who insure early retirees through their group health insurance. Companies of all sizes are eligible, whether they buy coverage or self-insure. That amounts to 80 percent of their expenses between $15,000 and $90,000.
Before employers rejoice too much, they should remember that the health insurance subsidies come with a catch. According to a White House fact sheet, they require plans to have implemented measures to reduce the cost of treating those with chronic conditions.A significant portion of employers continue to offer health coverage to their employees after retirement. In many cases, former employees retire before they are eligible for Medicare--the federal government's healthcare program for senior citizens.
The 55-and-over demographic has been susceptible to some of the most significant pitfalls of the private health insurance market if they are not insured by their former employer. They are more likely to have pre-existing conditions, which has been a barrier to coverage. The coverage older Americans could get came with significantly more expensive premiums, which are difficult to afford on a retirement income.
welcome to Insurances.net (https://www.insurances.net)
