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Early retirees may benefit from health care reform 2010-04-30 As the life expectancy of Americans continues to rise, retirees should account for future medical costs when planning for retirement. Under the new healthcare reform law, a temporary provision exists for early retirees that have not reached minimum Medicare benefit age of 65, reports Money Watch. Under the program, a $5 billion fund would reimburse employer-sponsored health care plans for surgical, hospital, medical and prescription drug costs for early retirees, according to Money Watch. The program would apply to retirees ages 55 and older and would reimburse the employer for 80 percent of medical costs between $15,000 and $90,000, Money Watch reports. Unexpected medical expenses or treatments can drain retirement income if retirees do not factor them into their plan. A report released by the Center for Retirement Research shows that the average medical costs for a typical 65-year old couple after retirement is $197,000 excluding a nursing home stay. Workers who are planning to retire early and are not old enough to apply for Medicare should consult with their employer about taking advantage of the temporary program.  |
