AN UNCERTAIN FUTURE
Retirement dreams fizzle for some with ‘Obamacare’ repeal
CHICAGO » Workers dreaming of early retirement are getting the jitters as Washington debates replacing the Obama-era health care law with a system that could be a lot more expensive for many older Americans.
The uncertainty over the cost of coverage in the individual market has caused some in their 50s and early 60s to put plans on hold. Others who already left jobs with health benefits before reaching Medicare age are second-guessing their move to selfemployment.
With her mobile home paid off, social worker Mary LytleGaines planned to retire next year and work part time.
“My job is very stressful. And my grandson is going to be 8. It would be sweet to spend more time with him,” said the 61-yearold from Wood River, Illinois, near St. Louis.
Now with insurance premiums possibly rising for her age group and income level, “I doubt I’ll retire.”
The Republican plan to replace the Affordable Care Act was still being tweaked Wednesday and may provide more help to older people than the version scored by the Congressional Budget Office last week. That analysis found a 64-yearold earning $26,500 would pay $14,600 out of pocket for insurance under the GOP plan, compared with just $1,700 under “Obamacare.”
The Republican proposal would allow insurers to charge older customers five times as much as younger ones, while cutting the size of tax credits for many. A last-minute revision by House GOP leaders may allow the Senate to provide additional tax credits for baby boomers but there are no guarantees.
“While it’s unclear how the (revision) will actually change the subsidies, it is almost certain that the combination of those two factors is going to result in a pretty meaningful increase in costs” for pre-retirement Amer-
icans, said labor economist Craig Garthwaite of Northwestern University’s Kellogg School of Management.
Cathy Beluch retired in 2015 from a job at a leading financial services firm to launch her own leadership coaching business. The 56-year-old from Hoboken,
New Jersey, took the plunge knowing she could shop for coverage on the health exchange. Beluch pays $650 a month for a health plan with a $2,500 deductible. She earns too much to qualify for a subsidy. Her health insurance costs are high, but she believes she will be worse off under the Republican proposal. Others said the situation for early retirees isn’t any more precarious than it has been under the Affordable Care Act with premiums rising and insurers exiting the individual market because of financial losses.
“The reality is people were already jittery about health insurance and early retirement. It’s not like health insurance is cheap for early retirees under Obamacare,” said Ed Vargo, a financial planner in Cleveland. “The promise of affordable health care under Obamacare never materialized” for many people.