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Glitch In Healthcare Overhaul Could Cause Some Seniors To Pay More For Insurance

July 6, 2011 by  

Problems with the healthcare overhaul continue to emerge.A glitch in President Barack Obama’s healthcare overhaul could force certain elderly Americans to pay more than others for insurance even if they are of similar age and medical history.

According to The Associated Press, older Americans who take early retirement and start receiving Social Security benefits at age 62 would likely pay significantly less for health insurance than those who do not retire early, under the new healthcare law.

This is because seniors are not eligible for Medicare until age 65, meaning there is a three-year gap between Social Security and the program, so younger retirees need to find their own health insurance. Social Security benefits are not counted as income, so those who retire early will likely receive Federal subsidies to help them pay their health insurance premiums — something that those who continue to work past age 62 will not receive.

“There is an equity issue here,” Robert Laszewski, a former health insurance executive, told the news provider. “If you get a job for 40 hours a week, you’re going to pay more for your health insurance than if you don’t get a job.”

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