IAFF LEGISLATIVE FACT SHEET

HEALTH INSURANCE FOR EARLY RETIREES

The IAFF urges Members of Congress to cosponsor the Medicare Early Access Act.

BACKGROUND

According to current estimates, 47 million – or one in six Americans – lack health insurance. The growing health insurance void in this country endangers the health of the uninsured and increases health care costs for all Americans. One of the largest groups of uninsured Americans is early retirees – those who leave the workforce before becoming eligible for Medicare coverage. In 2006, a staggering 10.7 million uninsured Americans were between the ages of 45 and 64.

Early retiree access to health insurance is especially important to professional fire fighters because they retire earlier than other occupations. Not only do fire fighters often lose their health insurance when they retire, but they also find it more difficult than other Americans to purchase affordable health insurance because of health ailments associated with long-term occupational exposure to toxins, smoke, stress and extreme physical exertion.

There have been a number of legislative proposals designed to ensure early retirees have access to health insurance. Some of these proposals seek to address the broader problem of covering all uninsured people, while others focus exclusively on early retirees. The proposals range from creating a national health care insurance system to using tax incentives to encourage people to buy insurance. One proposal that has generated significant interest in recent years would allow people between the ages of 55-64 to buy into Medicare.

CURRENT LEGISLATION

The Medicare Early Access Act, introduced in the 109th Congress in both the House and Senate by Representative Pete Stark (D-CA) and Senator Jay Rockefeller (D-WV), would give people ages 55 to 64 the option to buy Medicare coverage. The bill would:

          • give four million uninsured early retirees over age 54 the option to enroll in Medicare;
          • require individuals, rather than the Medicare Trust Fund, to pay the premiums; and
          • allow early retirees who have employer-provided health coverage to enroll in Medicare
            where the employer coverage would “wrap around” Medicare so as to pay for a percentage
            of the monthly premium and cover medical services not paid by Medicare.

CONGRESSIONAL ACTION

Representative Stark and Senator Rockefeller plan to re-introduce the Medicare Early Access Act early in 2008.