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Thursday, January 17, 2013

Hike In Medicare Age Won't Dramatically Increase Corporate Health Care Costs, CEO Says

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Businesses already are developing strategies to keep their workers productive for longer periods of time, so raising Medicare's eligibility age may only incrementally increase health care costs for corporate America,  the head of AT&T Inc. said Jan. 16.

Randall L. Stephenson, chairman and chief executive officer of AT&T, told reporters that raising Medicare's eligibility age from 65 to 70 would likely increase health care costs for businesses only slightly over the next few decades because people will be working longer anyway and thus will continue to receive health care benefits. Stephenson spoke at a briefing sponsored by the Business Roundtable, which is comprised of chief executive officers of leading U.S. companies. The group Jan. 16 recommended several Medicare reforms to Congress, including raising the eligibility age. The change would not impact those now age 55 and older, they said.

Officials at the briefing said older Americans that have to delay their entry into Medicare because of the increased eligibility age will be able to get coverage from the health insurance exchanges established in the health care reform law or via their employer if they are still working,

 

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