Help for the Retired and Uninsured

Joining the ranks of theuninsured at any age constitutes trauma, but for those who retirebefore they qualify for Medicare, it's scarier than snakes on a plane.Just at the point when the ailments of aging begin to crop up, peopleare vulnerable to losing their insurance as they leave the workplace,voluntarily or otherwise.

About 800,000 pre-Medicare retirees are uninsured. Another 4million age 55 to 64 are not working and might lose their insurance ifhealth care costs and premiums continue to soar. It's a retirementworry that tends to wreak havoc on one's golf swing.

The 250-plus major corporations represented by the HR PolicyAssociation feel this pain -- as well as their own angst over providingcoverage for their retirees. They have created an innovative plan thatcould make a significant contribution toward keeping employers in theinsurance game. Since the 1990s, the percentage of large companiesproviding coverage to retirees age 55 to 64 has declined from 40percent to 20 percent, a casualty of rising health care costs.

The fully insured plan is no panacea for all who might needit, but for some former employees of companies that elect toparticipate, this policy will be a major improvement over seekingindividual coverage. It will be relatively affordable due to employersubsidies, and no one will be turned down for coverage, regardless ofmedical condition.

This is made possible by creating a risk pool of formeremployees of member companies, a first-time innovation that bearswatching. Spreading the risk of the inevitable heavy expenses in thisage group cuts premium costs for employees, whose premiums will dependon the extent to which former employers contribute. Some companies may participate only by pooling employees. Withno subsidy, their premiums would then be higher. More than 40 membercompanies are considering the plan, which will be available throughAetna beginning in January. The number of companies offering full health coverage forretirees is expected to decrease. That trend is decried by AmandaMcCloskey of the American Association of Retired Persons, who calls ita symptom of a health care system in distress. At this point, AARP hasyet to create its own insurance product for pre-Medicare retirees,although it is making progress in this effort, she said. The HR Policy Association Plan, while no fix for that system,is a heartening attempt by the corporate sector to respond to the needsof former employees at a particularly vulnerable point in their healthcare history. Source: Houston Chronicle.Distributed by McClatchy-Tribune Information Services. Powered byYellowbrix.
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