RSC Republican Study Committee

Washington, Nov 5 - Back in the spring, AARP was an enthusiastic supporter of ObamaCare. Now with the winter months fast approaching, it appears that reality is setting in for the organization’s employees. Due in part to the increase in health care expenses under ObamaCare, insurance costs for AARP employees are set to rise by 8 to 13 percent. Additionally, the employer will be making changes to copayments and deductibles to avoid the new law’s “Cadillac tax” – a move that will shrink the value of plans by shifting extra costs to employees.

• “AARP's endorsement helped secure passage of President Barack Obama's health care overhaul. Now the seniors' lobby is telling its employees their insurance costs will rise partly as a result of the law.”

• “In an e-mail to employees, AARP says health care premiums will increase by 8 percent to 13 percent next year because of rapidly rising medical costs.”

• “And AARP adds that it's changing copayments and deductibles to avoid a 40 percent tax on high-cost health plans that takes effect in 2018 under the law. Aerospace giant Boeing also has cited the tax in asking its workers to pay more. Shifting costs to employees lowers the value of a health care plan and acts like an escape hatch from the tax.”

• “Although the tax on so-called ‘Cadillac’ health care plans doesn't take effect for years, employers are already beginning to assess their potential exposure because it is hefty: at 40 percent of the value above $10,200 for individual coverage and $27,500 for a family plan.”