How Obamacare Can Actually Help in Retirement Planning, With Steve Vernon, CBS Moneywatch

The vast majority of people who want to retire before the age of 65 cannot, as medical care is a deal breaker, says Steve Vernon, writer for CBS Moneywatch.  These people have resigned themselves to work until the age of 65 so they can be covered by Medicare.

Obamacare allows people to buy health insurance before the age of 65 and Vernon thinks Obamacare is a very real improvement in helping those who want to retire or start their own business before the age of 65. 

Medicare has a prescription drug program called Plan D, which allows for prescription drug coverage of low amounts.  Once a certain limit is reached, a donut hole exists, where then people have to pay out of pocket beyond that limit.  Obamacare has a phased in closing of the donut hole which will fully phase in by 2020, Vernon says. 

Vernon expects premium costs to come in as expected but says that regardless, people have to realize healthcare is expensive and it will cost money to buy a medical premium. 

Obamacare is not socialized medicine, says Vernon.  Socialized medicine only has doctors or hospitals employed by the federal government.  With Obamacare, you have insurance companies offering insurance and a vast majority of doctors and hospitals that are privately owned and operated. 

Vernon does seem some flaws in Obamacare, one of which is that it puts too much power in the hands of insurance companies, squeezing healthcare providers out of the business.  He also says that Medicare can't negotiate for prescription costs with the big pharma companies under Obamacare. 

 Steve Vernon  Source:      blog.soa.org

Steve Vernon

Source:  

blog.soa.org

Vernon says despite these flaws, it's important to work with them and correct them because "we need this type of coverage." 

Steve Vernon, writer for CBS Moneywatch, spoke with Retirement News Today, providing online, on-demand retirement planning video content. 

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