United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2001-11-01 monographic deposited born digital 20 p. GA 1.13:GAO-02-178T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-178T P0b002ee1803939fe f:d02178t DGPO 2010-08-12 2011-03-28 GAOREPORTS-GAO-02-178T machine generated eng fdlp REPORT GAOREPORTS-GAO-02-178T GAO-02-178T Health care cost control Health insurance cost control Managed health care Retirement benefits Census Bureau Current Population Survey Medicaid Program Medicare Choice Program Medicare Current Beneficiary Survey Medicare Program Medigap Testimony A02413 Many retired Americans--about ten million aged 55 or over--relied on employer-sponsored health benefits in 1999 to provide health coverage until they became eligible for Medicare or as supplemental coverage to pay for out-of-pocket costs not covered by Medicare. However, the number of employers offering these benefits has declined considerably over the past decade. This decline, coupled with the sheer numbers of the aging baby boom population, has raised concerns about whether individuals will continue to have access to employer-sponsored health benefits when they retire, and, if not, whether alternative sources of coverage may assist in meeting retirees' health care needs. Some retirees face gaps in coverage to meet their health care and long-term care needs because the availability of employer-sponsored retiree health benefits is declining and alternative sources of coverage are costly or limited. Despite several years of a sustained strong economy and relatively low increases in health insurance premiums during the late 1990s, the availability of employer-sponsored retiree health benefits has eroded. Two widely cited surveys found that coverage has declined such that about one-third of large employers and less than ten percent of small employers offer retiree health benefits. Nonetheless, the percentage of retirees with employer-sponsored coverage remained relatively stable between 1994 and 1999, covering about 57 percent of retirees ages 55 to 64 and providing Medicare supplemental coverage to about 32 percent of retirees 65 or older. With the declining availability of employer-sponsored retiree health benefits, alternative sources of health coverage for retirees may be costly, more limited, or unavailable. Retirees not yet 65 may be eligible for coverage from a spouse's employer or from their former employer under the provisions enacted as part of the Consolidated Omnibus Budget Reconciliation Act of 1985. Other retirees in this age group may seek coverage in the individual insurance market, but individual policies can be expensive or offer more limited coverage, especially for those with existing health problems. Nearly one-third of Medicare-eligible retirees have employer-sponsored supplemental coverage, but many others purchase individual private supplemental coverage known as ''Medigap.'' Although Medigap coverage is widely available to retirees when they initially enroll in Medicare at 65, it costs an average of $1300 per year and even more for policies that include prescription drug coverage. Neither Medicare nor private insurance covers a significant share of long-term care services. The potentially catastrophic costs of long-term care are currently paid primarily by Medicaid, the joint federal-state health financing program for certain low-income individuals, and by individuals out-of-pocket https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-178T/html/GAOREPORTS-GAO-02-178T.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-178T/pdf/GAOREPORTS-GAO-02-178T.pdf GAO-02-178T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-178T Testimony GAO-02-178T; Retiree Health Insurance: Gaps in Coverage and Availability; Health care cost control Health insurance cost control Managed health care Retirement benefits Census Bureau Current Population Survey Medicaid Program Medicare Choice Program Medicare Current Beneficiary Survey Medicare Program Medigap Public Law 105-33 Public Law 106-265