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Citing health overhaul, AARP hikes employee costs

November 5, 2010

(AP) — AARP‘s endorsement helped pass President Barack Obama’s health care overhaul. Now the seniors’ lobby is telling employees their costs will go up as a result.

In an e-mail to employees, AARP says health care premiums will increase by 8 percent to 13 percent next year because of rapidly rising medical costs.

And AARP says it is changing copayments and deductibles to avoid a 40 percent tax on high cost health plans that takes effect in 2018 under the law. Shifting costs to employees lowers the value of a health plan; it’s like an escape hatch from the tax.

AARP officials said medical inflation is the main reason employee costs are rising. Its legislative affairs director, David Certner, says the health care law is “a small part.”



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