Seeking to justify large increases in premiums for older adults under the proposed American Health Care Act (AHCA), the Republican staff of the Joint Economic Committee released a short paper last month entitled “The Myth of the Senior Tax.” But the paper fails to grasp the severe consequences of weakening the current law that prevents insurers from charging older consumers more than three times what younger people pay.
The AHCA would raise that limit: Premiums for older people could jump to five times the amount insurers charge younger consumers, from the limit of three times the younger consumers’ rate under the current law, the Affordable Care Act (ACA). Such a change would significantly increase financial burdens on millions of older adults, but the shift in costs would do little to get more young consumers to enroll. Key points to consider include: Significantly increasing premiums for older adults would only marginally lower costs for younger adults. The Joint Economic Committee paper incorrectly claims that weakening the limit on age rating to a 5-to-1 ratio would not penalize any age group. The burden of such a policy change would actually fall heavily on older adults, according to Milliman research commissioned by AARP. Under the AHCA:
Weakening the limit on age rating would not encourage greater enrollment of younger adults. Modeling by Milliman found that:
READ MORE OVER AT AARP...
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The St. Lawrence County Chapter (SLCC) #2831 is a community of advocacy and volunteers whose purpose is to 1) promote at the local level the priorities, programs and policies specific for the benefit of our seniors, 2) maximize member engagement in a broad menu of services, information and educational activities, 3) demonstrate the contributions and potential of people who are 50+ to encourage their full participation in contemporary life, 4) create fundraising opportunities to achieve self-sufficiency, and 5) stimulate public interest in a variety of issues.
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November 2019
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