We all know by now that not everybody is behind health care reform. But while some states are against it — they"re also queuing up to get help from the government. Several states are trying to get the health care legislation overturned in court, but still aim to get their share of subsidies when it comes to the health insurance costs of retired workers.
The legislation is making $5 billion available to assist employers in maintaining health insurance benefits for those who have retired at age 55 and up but aren"t eligible to receive Medicare yet. The subsidy covers 80 percent of health claims between $15,000 and $90,000.
Employers are allowed to use the government funds to reduce their own costs or to lower the costs of their retirees by offering lower premiums and cost sharing. All companies that are approved for a subsidy are required to notify their retired employees they have received government help.
So far 16 states have been approved for the subsidies that are designed to help early retirees pay their medical bills and seven of them are attempting to sue the federal government over the reforms. The Associated Press reports that Nevada, Nebraska, Michigan, Louisiana, Indiana, Idaho and Arizona are planning to sue while getting the subsidies.
The subsidies are designed to help retirees until health care reform is fully operational. The payments end in 2014 when eligible citizens will be able to receive tax credits which will help them pay their premiums.