Hillary Clinton’s proposal toallow those under the age of 65 to buy into Medicare may findsupport among employers.

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The likely Democratic nominee has suggested that people shouldbe able to opt into the public health program forsenior citizens before retirement age, perhaps at age 50 or 55.

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Clinton reasons that Medicare could provide care to middle-agedAmericans cheaper than private insurance due to the sheer size ofits pool of beneficiaries. Having younger workers and retirees helpfund the program through premiums might also help offset the highcosts Medicare incurs to care for the oldest and sickestbeneficiaries.

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If it’s not clear how the partial “public option” would be paidfor by the federal government, and whether the deal extended topre-retirees would differ from that offered to those over 65, it isclear that many companies would welcome the prospect of no longerhaving to provide coverage for their oldest employees and retirees.Companies that offer coverage to retirees under the age of 65 payan average of $13,000 for the plans, according to a recent study byMercer.

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“Employers would like that because it would cost them less thanwhat it costs them for pre-65 people today,” Derek Guyton, apartner at Mercer health and benefits, told Forbes columnist BruceJapsen. “Employers like giving more choices.”

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Companies have already begun ditching retiree coverage inresponse to rising health costs in recent years. According toMercer, the percentage of employers that offer pre-Medicare retireehealth plans has dropped from 46 percent in 1993 to 28 percenttoday. The percentage that offer some type of health benefit toMedicare-eligible retirees has similarly declined from 40 percentto 21 percent.

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Throughout the race for the Democratic nomination, the formersecretary of state has dismissed calls from heropponent, Bernie Sanders, to establish a single-payer,“Medicare-for-all” health care system as unrealistic. And yet, herrecent proposal appears to go about half of the way towards thevision the Vermont senator is calling for.

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