AARP Endorses Rockefeller Bill To Help Uninsured Older Americans

AARP has endorsed a measure introduced by Sen. Jay Rockefeller (D-WV) to permit people between the ages of 55 and 64 to buy into the Medicare program.

“This legislation would provide a much-needed alternative to the current individual market’s harmful underwriting and rating practices—including ratings based on age and health status—that push comprehensive coverage out of reach for millions of older Americans,” said David Sloane, AARP Senior Vice President for Government Relations, in a letter to the senator.

Senator Rockefeller and Senator Benjamin Cardin (D-MD) introduced the Medicare Early Access Act (S. 960) which would allow individuals between the ages of 55 and 64 to buy into the Medicare program early. Many older Americans have lost their health insurance due to early retirement or lay offs, but are too young to qualify for health insurance under Medicare. The legislation makes certain this part of our population can access affordable health care coverage, while also protecting the solvency of Medicare.
 
“People between ages 55 and 65 are the fastest growing group of uninsured Americans. These individuals often have a difficult time buying health insurance on their own because they tend to have more chronic health problems that can result in either the denial of coverage, limited coverage, or very expensive policies,” said Senator Rockefeller, Chairman of the Senate Finance Subcommittee on Health Care, in a press release. “This legislation helps a vulnerable segment of our population who need access to affordable health insurance.”
 
The legislation also includes a 75 percent refundable federal tax credit that would make it even more affordable for people age 55 and over to obtain health insurance coverage.

Sloane’s letter to the Senator praised the subsidy. “Without a subsidy, the majority of these individuals would continue to go without any affordable, comprehensive health care options,” Sloane wrote.

Sloane said that this bill would help not only the older Americans who would gain access to coverage, but also those Americans with insurance that, due to cost shifting, otherwise end up covering the uncompensated costs of these uninsured. The bill also offers another important advantage—older Americans would not have to postpone needed care, making their entry into Medicare less costly.

In addition, by allowing early retirees to enroll in Medicare rather than their retiree plan, this bill allows employer retiree plans to “wrap around” Medicare coverage.

Such a wrap-around is likely to provide coverage that is more comprehensive for these individuals as well as a more affordable coverage option for both them and their former employers.