WHAT REFORM MEANS FOR EARLY-RETIREES

Access to Information Is Improved. This legislation provides standardized, easy-to-understand information explaining the differences between health insurance plans made available through the Exchanges and/or that are offered in a particular geographic region.   As a result, early-retirees will be able to more easily compare prices, benefits, and performance of health plans.  Early-retirees will now be able to decide which health insurance option is right for them.

Supports Early Retiree Health Coverage.  This legislation provides $5 billion in financial assistance to employer health plans that cover early retirees.  This temporary program will make it easier for employers to provide early retirees coverage and will provide premium relief of up to $1,200 for every family that is provided with employer-based insurance coverage. This provision will increase the percentage of large firms providing workers with retiree coverage.

Improves Choices for Early Retirees. This legislation ensures that early retirees will always have guaranteed choices of quality, affordable health insurance, even if they retire early or lose access to employer-sponsored insurance.  Exchanges are of particular benefit to Americans aged 55 to 64, fewer than half of whom work full-time.

Preventive Care for Better Health. Going forward, health insurance plans will be required to cover prevention and wellness benefits. Such benefits will be exempt from deductibles and other cost-sharing requirements.  Investment in prevention and public health will encourage innovations in health care that will reduce the incidence of illness and disease, which are more costly to treat. More than 80 percent of U.S. health costs result from chronic diseases, many of which afflict early retirees, and most of which can be prevented or better managed at far lower cost.