Author: Selen Ayse OpcinPublisher:
ISBN:
Category :
Languages : en
Pages : 246
Book Description
The Effect of Retiree Health Insurance on Early Retirement
Author: Selen Ayse OpcinHealth Insurance and Early Retirement
Author: Jonathan GruberPublisher:
ISBN:
Category : Health insurance
Languages : en
Pages : 60
Book Description
Although the vast majority of working individuals aged 55-64 receive health insurance coverage through their employment, many of these individuals face the prospect of losing such coverage should they retire before becoming eligible for guaranteed public coverage through Medicare at age 65. Because the expected medical expenses of this group are large and uncertain, the availability of health insurance coverage after retirement could be a key factor in the retirement decision of older workers. We examine the effect of health insurance on retirement by looking at variation in state and federal 'continuation of coverage' mandates, laws which allow individuals to continue purchasing health insurance through a previous employer for a specified number of months after leaving the firm. By allowing individuals to maintain their employer-provided health insurance after retirement, these laws decrease the cost of early retirement for those who do not have other retiree health insurance available. Using data on 55-64 year old men from the Current Population Survey, we find that one year of continuation benefits increases the probability of being retired by 1 percentage point; this represents a 5.4 percent increase in the baseline probability of being retired for this group. We also find that continuation mandates increase the likelihood of being insured after retirement.
Employer-Sponsored Health Insurance for Early Retirees
Author: Erin StrumpfPublisher:
ISBN:
Category :
Languages : en
Pages : 43
Book Description
The proportion of large employers offering retiree health insurance in the U.S. has declined by half in the past 20 years. This paper examines the potential implications of this change by estimating the effects of a retiree health insurance (RHI) offer on a comprehensive set of labor, health and health care use outcomes in the near-elderly population. The analysis is based on ten years of longitudinal data from the Health and Retirement Survey (1992-2002). After restricting to respondents who have employer-sponsored health insurance at baseline, I find that an RHI offer increases the probability of early retirement by 35 percent for both men and women. An RHI offer decreases the probability of being uninsured by 55 percent, while increasing the probability of employer-sponsored coverage and decreasing the probability of public coverage. There is suggestive evidence that individuals with an RHI offer are more likely to visit the doctor, use prescription drugs on a regular basis and have outpatient surgery. While we see no significant effect on health, RHI provides significant protection from high out-of-pocket medical costs. In the top 40 percent of the out-of-pocket spending distribution, those with an offer of retiree coverage spend 21 percent less on average.Estimates of the value of RHI of over $3,000 per year suggest that increasing opportunities for the near-elderly to purchase coverage at actuarially-fair prices through the individual market or public programs could significantly increase insurance coverage and reduce financial risk for this age group.
Does Retiree Health Insurance Encourage Early Retirement?
Author: Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 0
Book Description
The strong link between health insurance and employment in the United States may cause workers to delay retirement until they become eligible for Medicare at age 65. However, some employers extend health insurance benefits to their retirees, and individuals who are eligible for such retiree health benefits need not wait until age 65 to retire with group health coverage. We investigate the impact of retiree health insurance on early retirement using employee-level data from 64 diverse firms that are clients of Towers Watson, a leading benefits consulting firm. We find that retiree health coverage has its strongest effects at ages 62 and 63, resulting in a 3.7 percentage point (21.2 percent) increase in the probability of turnover at age 62 and a 5.1 percentage point (32.2 percent) increase in the probability of turnover at age 63; it has a more modest effects for individuals under the age of 62. A more generous employer contribution of 50 percent or more raises turnover by 1-3 percentage points at ages 56-61, by 5.9 percentage points (33.7 percent) at age 62, and by 6.9 percentage points (43.7 percent) at age 63. Overall, an employer contribution of 50 percent or more reduces the total number of person-years worked between ages 56 and 64 by 9.6 percent relative to no coverage.
The Role of Retiree Health Insurance in the Early Retirement of Public Sector Employees
Author: John B. ShovenPublisher:
ISBN:
Category : Economics
Languages : en
Pages : 0
Book Description
Most private sector workers with employer-provided health insurance have a strong incentive to continue working until Medicare eligibility in order to maintain group health coverage. However, most government employees have access to retiree health coverage, which allows them access to group health coverage even if they retire before Medicare eligibility. We study the impact of retiree health coverage on the probability of stopping work among public sector workers between the ages of 55 and 64. We find that, for state and local government employees, retiree health coverage raises the probability of stopping work by 5.1 percentage points (around 28 percent) between ages 60 and 64. However, we find no evidence that retiree health coverage influences state and local employees' decisions to stop work at ages 55-59, or that such coverage has an effect on the probability of stopping work for federal and military employees.
Does Retiree Health Insurance Encourage Early Retirement?
Author: Steve NycePublisher:
ISBN:
Category :
Languages : en
Pages : 50
Book Description
The strong link between health insurance and employment in the United States may cause workers to delay retirement until they become eligible for Medicare at age 65. However, some employers extend health insurance benefits to their retirees, and individuals who are eligible for such retiree health benefits need not wait until age 65 to retire with group health coverage. We investigate the impact of retiree health insurance on early retirement using employee-level data from 64 diverse firms that are clients of Towers Watson, a leading benefits consulting firm. We find that retiree health coverage has its strongest effects at ages 62 and 63, resulting in a 3.7 percentage point (21.2 percent) increase in the probability of turnover at age 62 and a 5.1 percentage point (32.2 percent) increase in the probability of turnover at age 63; it has a more modest effects for individuals under the age of 62. A more generous employer contribution of 50 percent or more raises turnover by 1-3 percentage points at ages 56-61, by 5.9 percentage points (33.7 percent) at age 62, and by 6.9 percentage points (43.7 percent) at age 63. Overall, an employer contribution of 50 percent or more reduces the total number of person-years worked between ages 56 and 64 by 9.6 percent relative to no coverage.
Health Insurance and Early Retirement
Author: Jonathan GruberPublisher:
ISBN:
Category :
Languages : en
Pages : 49
Book Description
Although the vast majority of working individuals aged 55-64 receive health insurance coverage through their employment, many of these individuals face the prospect of losing such coverage should they retire before becoming eligible for guaranteed public coverage through Medicare at age 65. Because the expected medical expenses of this group are large and uncertain, the availability of health insurance coverage after retirement could be a key factor in the retirement decision of older workers. We examine the effect of health insurance on retirement by looking at variation in state and federal 'continuation of coverage' mandates, laws which allow individuals to continue purchasing health insurance through a previous employer for a specified number of months after leaving the firm. By allowing individuals to maintain their employer-provided health insurance after retirement, these laws decrease the cost of early retirement for those who do not have other retiree health insurance available. Using data on 55-64 year old men from the Current Population Survey, we find that one year of continuation benefits increases the probability of being retired by 1 percentage point; this represents a 5.4 percent increase in the baseline probability of being retired for this group. We also find that continuation mandates increase the likelihood of being insured after retirement.
Employer Provided Health Insurance and Retirement Behavior
Author: Alan L. GustmanPublisher:
ISBN:
Category : Employee fringe benefits
Languages : en
Pages : 64
Book Description
This paper analyzes the effects on retirement of employer provided health benefits to workers and retirees. Retiree health benefits delay retirement until age of eligibility, and then accelerate it. With a base case of no retiree health coverage, granting retiree health coverage to all those with employer coverage while working accelerates retirement age by less than one month. Valuing benefits at costs of private health insurance to unaffiliated individuals, rather than at group rates, increases the effect. Ignoring retiree health benefits in retirement models creates only a small bias. Changing health insurance policies has a small effect on retirement.
Retiree Health Benefits, Including Proposals to Extend Medicare to Cover Early Retirees at Age 60
Author: United States. Congress. House. Committee on Ways and Means. Subcommittee on HealthPublisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 140
Book Description
Health Insurance Coverage in Retirement
Author: Christian E. WellerPublisher:
ISBN:
Category : Health insurance
Languages : en
Pages : 76
Book Description