NewRetirement Retirement News Digest : Keeping Early Retirees Afloat
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NewRetirement Retirement News Digest

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Keeping Early Retirees Afloat

Blue Ridge Times, June 24th, 2007

What with years of layoffs, employee buyouts and sending jobs offshore, corporate America has helped create a pool of about 800,000 early retirees who now find themselves in a health care bind.

They are no longer eligible for employer insurance programs, too young to qualify for Medicare and unable to afford private insurance on their own.

But now corporate America, having created the problem, is trying to help solve it.

A group of some of the nation’s biggest companies plans to announce today a program meant to make health insurance available to their former employees ages 55 to 64.

Not only would the insurance policies be relatively affordable, but no one could be turned down for coverage, regardless of medical condition. That is a crucial provision, because high blood pressure, heart disease, cancer and other medical afflictions of late middle age can make it hard for early retirees to find an insurer willing to cover them at any price.

The specifics will vary from employer to employer, with some companies helping subsidize the coverage. Other employers might simply create large pools of retirees, making them eligible for discounted group rates.

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Published Monday, June 25, 2007 9:31 PM by jberman
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