Disparity in health-care law found for older adults

Associated Press

WASHINGTON

Another unintended consequence of President Barack Obama’s health-care law has emerged: Older adults of the same age and income with similar medical histories could pay widely different amounts for private health insurance due to a quirk of the complex legislation.

Those differences could be substantial. A 62-year-old could end up paying $1,200 a year more than his neighbor, in one example. And experts say the disparities among married couples would be much larger. A leading GOP senator is considering a fix.

Aware of the problem, the Obama administration says it also is exploring options to head off what could become yet another controversy over the health-care overhaul. Starting in 2014, the law expands coverage to more than 30 million uninsured people and requires most Americans to carry insurance.

The glitch affects mainly older adults who are too young for a Medicare card but have reached 62, when people can qualify for early retirement from Social Security. Sixty-two is the most common age at which Americans start taking Social Security, although their monthly benefit is reduced.

As the law now stands, those who take early retirement would get a significant break on their health-insurance premiums. Part or all of their Social Security benefits would not be counted as income in figuring out whether they can get federal subsidies to help pay their premiums until they join Medicare at 65.

“There is an equity issue here,” said Robert Laszewski, a former health-insurance executive turned policy consultant. “If you get a job for 40 hours a week, you’re going to pay more for your health insurance than if you don’t get a job.”

The administration says it is working on the problem.