Strategic implications: What is the effect on early retirees?
In part four of our blog series, “Ten strategic considerations of the Supreme Court upholding PPACA,” we assess how the role of the employer may change under PPACA in covering those between the ages of 55 and 65.
PPACA may change the landscape for how employers handle early retiree healthcare coverage. New options emerge for those between ages 55 and 65, with the exchanges becoming very attractive for attaining affordable coverage. The absence of medical underwriting, the limitations placed on age rating (i.e., a maximum 3-to-1 ratio between insurance premiums for the oldest and youngest), and the availability of premium and benefit subsidies make the exchanges an affordable place for people 55-65 years old to purchase coverage.
For more insight into health insurance exchanges and early retiree health coverage read this Benefits Perspectives article.