HR3590 Health Care Bill & Government Health Insurance

A demographic that health care reform seeks to take care of is composes of senior citizens and retirees, and for those who already belong to this category – or are going in that direction – it will be interesting to find out what they will expect.

FavStocks.com provides information about aspects of the health care reform law that will impact senior citizens. We have discussed some of them in previous posts, such as being able to receive rebates on prescription drugs, the gradual closing of the coverage gap and the fact that health care coverage will now be compulsory.

In addition, there will be new rates for Medicare taxes, and these Medicare taxes will not be deducted from IRAs, pensions, 401Ks and other retirement plans. Then, the medical deduction allowance will be increased to 10 percent of the annual gross income of the individual by year 2013, and starting in 2013 until 2016, senior citizens aged 65 and older as well as their spouses will be exempted. Health care reform will also bring added protection to those who will purchase life insurance, as insurers will no longer be allowed to deny applicants by year 2014.

According to a post on SecondAct.com, retirees will need to be ready for changes in their health care benefits over the next few years. Due to rising health care costs, there are employers that have begun to cut back on benefits or did away with retiree coverage altogether. Since the new health care law repeals the tax breaks that previously encouraged employers to provide coverage, more employers will probably opt to move retirees to Part D.