Health Care Costs Prompt Baby Boomers To Delay Retirement

Ruzanna Harutyunyan's picture
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USA Today on Wednesday, as part of an ongoing series about retirement issues in the 21st century, examined how many of the 1.6 million baby boomers at age 62 who will become eligible for Social Security this year "have postponed plans to retire" because of health care costs and other economic concerns.

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In 2007, only 45% of large companies subsidized health insurance for early retirees, compared with 88% in 1991, according to Hewitt Associates. As a result, many employees who retire before age 65, when they become eligible for Medicare, would have to find a new source of health insurance, such as the individual coverage market, Rick McGill, head of retiree medical consulting at Hewitt, said.

However, McGill said, individual health insurance policies are expensive and often unavailable for early retirees. Between 20% and 40% of early retirees who apply for individual health insurance policies are rejected or have to pay higher premiums than other policyholders, he said (Block/Gopal, USA Today, 8/27).

Reprinted with permission from kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, and sign up for email delivery at kaisernetwork.org/email . The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation. © 2007 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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Comments

there has to be a way to settle this problem...I remember when you went to the doctor and paid..and hospital stays were within reason...Most people did have major medical..or catastrophic insurance. It would probably lessen doctor visits...and also encourage preventative care...carol stanley author of For Kids 59.99 and Over