Lower Health Insurance Coverage for Young Retirees

Nov. 15, 2012 - PRLog -- The Employer Benefit Research Institute has released latest evidences which show the reality of retiree health benefits and its present state. Many workers still dream about early retirement but it is not that employers also share the same. Employees are not getting efficient benefit on early retirement and it reveals about research work.

The results revealed on such issued are mixed of bad and worst news. According to reports revealed by a non profit company in Washington D.C. only 17.7% of employees worked for a private-sector business in 2010 that offered health insurance (http://www.privatehealthinsurance247.co.uk/) coverage to early retirees. The report is showing downturn in the sector with almost 29% in 1997. In the same vein, in 2010 15.9% of employees were engaged in a business that offered health coverage to Medicare-eligible retirees, which was recorded as 25.4% in 1997.

What is the worse news?

There are very few companies are still offering retiree health benefits and such companies are raising cost of premiums with reduced coverage and tough eligibility criteria. When employers were asked about the steps they might take in 2013 with regard to retiree health benefits then 43% of surveyed employers who offered such benefits replied that very likely they will increase retirees’ portion of premiums and 35% said they are somewhat likely to increase it. Only 21% of surveyed employers said they are very likely to increase cost sharing in 2013, and 32% said they are somewhat likely to do so.

EBRI’s findings released that workers are accepting the modern change in retiree health benefit trend and any cause for optimism in EBRI’s findings are about their prospects. Almost half of workers (45%) in 1997 workers expected retiree health benefits, while only 27% of early retirees were offered health benefits and 20% of Medicare-eligible retirees actually had such coverage. The figures have changed dramatically in 2010; about 32% workers were expecting retiree health benefits while just 25% of early retirees and 16% of Medicare-eligible retirees actually had benefits.

Past records have strengthened the new figures in 2012. The availability of such exchanges were not surprising in 2012 where Health survey reports by Towers Watson/National Business group has revealed that many employers to exit sponsorship of retiree medical insurance programs.