Work Benefits
Health Insurance Coverage and Costs at Older Ages: Evidence from the Health and Retirement Study
Research Report
Richard W. Johnson, The Urban Institute
September 2006
Employer-sponsored retiree health insurance plays a critical role in the health and income security of older adults. In recent years there have been indications that employer-sponsored retiree health benefits are eroding. Because this signals trends that are of great concern to people who are currently retired and to those planning to retire, it is important to understand how employers' decisions are affecting individuals.
Some media stories have already revealed how these changes have affected particular retirees. This study looks beyond the anecdotes to see how trends identified in employer surveys translate to a population of individuals. However, unlike most previous studies, it is based on benefit and cost information reported by individuals.
Using data from the Health and Retirement Study, a large, nationally representative longitudinal survey of older Americans, this report examines the availability and cost of health insurance coverage at older ages, paying particular attention to employer-sponsored health benefits. Also examined are how coverage changes as people age, the likelihood that people lose employer-sponsored retiree health benefits over time, and the availability of retiree benefits for full-time workers approaching retirement. While the analysis focuses on coverage and costs in 2002, trends since the mid-1990s are also examined where data permits. (67 pages)
Pub ID: 2006-20