Research by Author & Topic

Publications by Richard W. Johnson on Health Insurance

Older men who expect high health care costs for themselves or their spouses after age 65 retire about 13 months later than those who expect low costs. The difference for women is 12 months. For those receiving health insurance from their employers, continued work reduces the risk of high out-of-pocket health care costs. Working longer also increases retirement incomes, making health care costs more affordable.

Rising health care costs threaten financial security at older ages and lead many older Americans to delay retirement. Continued work reduces the risk of high out-of-pocket health care costs for workers receiving health benefits from their employers. Working longer also increases retirement incomes, making health care costs more affordable. This report shows that men with very high expected health care costs after age 65 retire 11 months later than those with very low health care costs. For women, the difference is 12 months.

Because most workers receive health benefits from their employers, retirement often disrupts health insurance coverage. This brief examines the availability and cost of health insurance at ages 55 to 64 and changes in coverage after retirement. Today most workers with employer health benefits retain their coverage when they retire early, although their required premium contributions have increased sharply over the past 10 years. In the future, however, steady declines in the share of younger workers with access to retiree health benefits may jeopardize income security for the next generation of retirees.

A Medicare buy-in allowing persons below the age of full eligibility to purchase Medicare coverage has been discussed as one way to help uninsured near elderly persons obtain insurance coverage. This brief summarizes findings from an Urban Institute report that examined potential participation rates in alternative buy-in plans and measured their potential impact on rates of uninsurance. Many individuals younger than 65 would purchase Medicare coverage, but without subsidies participation would be limited to those who could afford substantial premiums. Buy-ins would reduce uninsurance rates only if they provided subsidies to make the plans affordable to those with limited incomes.

What distinguishes the near elderly from other groups is that they are not old enough to qualify for Medicare coverage (unless they are disabled), yet they are much more likely to experience serious health problems than younger persons. In addition, many near elderly persons have already retired, which can interfere with insurance coverage because most Americans receive their health benefits from their employers.

Urban Institute researcher, Richard W. Johnson, testifies before the Senate Finance Committee about health insurance coverage among the near elderly — those between the ages of 55 and 64. An issue that is becoming increasingly important as the first Americans born during the Baby Boom years begin to reach retirement age.