Retirees return to work to pay health insurance premiums
03 03 08 - 12:52
Fewere companies offering benefits to retirees
By Deidre Williams NEWS STAFF REPORTER
Updated: 03/03/08 7:39 AM
Patricia Mull knew she would need health insurance.
But she didn't know it would mean taking on a full-time job to get it.
Retired last year after 15 years teaching seventh-through 12th-grade English for Rochester Public Schools, Mull never took the health plan offered by the school district. Instead, she was included on her husband's health insurance because he had better coverage.
That all changed when they recently split up.
"Now that I'm single again, I have to have my own health insurance," said the 56-year-old Mull, who packed up and moved to Buffalo to take a full-time teaching job at the University at Buffalo just to have medical coverage.
She is among a growing number of retirees who are concerned about the increasing cost of health insurance premiums and their ability to pay for the coverage. Many, like Mull, opt to take on second jobs - either part time or full time - after retirement.
"We know that it's a major expense for people after they retire," said Andrew Eschtruth, spokesman for the Center for Retirement Research at Boston College, which was established in 1998 to conduct research on retirement issues.
According to Eschtruth, the share of large firms offering retirement health benefits fell from 66 percent in 1989 to 35 percent in 2006.
"We know companies have cut back significantly offering retirees health coverage," he said.
An AARP study released last month, showed that 415,000 New York residents ages 50 to 64 did not have health care insurance coverage for all of 2006.
Also, an AARP telephone survey of 802 New York State residents in that age group revealed that 63 percent were worried about maintaining their current health care coverage and more than 77 percent reported paying $500 each month for health care.
Nearly half of those polled said they are extremely or very worried about having to pay more for health care.
"We were concerned when we saw the results of this survey for this population," said Bill Ferris, a legislative representative for AARP's New York State office. "We see this as very disturbing."
Contributing to the problem is that people 50 to 64 are not yet eligible for Medicare and typically do not qualify for retiree health benefits.
"One of the things that is happening in Western New York, but also nationally, is that a lot of people retire younger than historically 65. Now people are retiring at 55," said John Slenker, the state Labor Department's regional economist.
"In this state, you're not eligible for the EPIC Program [Elderly Pharmaceutical Insurance Coverage] unless you're 65, or Medicare Part D unless you're 65 or disabled," Ferris added.
"So it's a particularly disturbing figure. This population does not have anywhere to go for government assistance or health care coverage."
In addition to taking on second jobs, some retirees try to save money by not seeing a doctor, not filling a prescription, taking less medication than was prescribed or cutting back on food, fuel or electricity.
That could have been the case for William Vogel if he hadn't taken on a second job. The 66-year-old Depew resident retired two years ago from construction work after 13 years hanging drywall. He retired when back problems made that job difficult.
In December 2005, Vogel started a part-time job at Wegmans to help supplement his income, especially his ability to pay health insurance premiums.
"It helps substantially. I will be there as long as I can be," said Vogel, who is typical of the "very active" retirees who go back to work.
Those retirees provide an excellent source to the labor pool because they show up on time, and they have the skills necessary to do many different types of jobs, explained Slenker, of the state Labor Department.
"There's a pool of people who are very active. With baby boomers, they're retiring from the jobs they did for their entire careers, but many are staying active and working," he said.
"So as baby boomers age and get into that group of seniors, there is a large pool of them that aren't acting like traditional seniors. Some may work at Home Depot, but as a cashier. But if they can do the heavy lifting, they"ll do it."
Even for those retirees working again, or who have government-subsidized insurance, keeping up with the rising cost of health care is a challenge.
Last year, reports the Center for Retirement Research, out-of-pocket Medicare expenses amounted to $3,800 for a single individual and double that for couples.
In addition, expenditures on items not covered, such as dental care, eyeglasses and hearing aids, could add another $500 for a single person and $1,000 for a couple. Those with bad health habits or chronic illnesses likely will incur higher costs.