Employers better keep an eye on budget talks. This is no time to mess with health benefits
The idea of raising the age for Medicare eligibility is under consideration by the White House and is also a proposal in the Senate. Under current law most employers that provide health benefits to employees remain primary coverage even when the worker turns age 65. If that age is raised more liability is transferred to the employer plan until the worker retires.
Depending on what other changes to Medicare coverage and premiums are made, they could provide an incentive for workers to stay on the job longer to benefit from active employee benefits.
The message to employers is loud and clear, now is no time to make significant changes in your health benefits. Wait until the dust settles on budget talks and regulations for the implementation of PPACA through 2014.