Once older workers are unemployed it is difficult for them to find re-employment. In the coming year, with the Affordable Care Act in place, they will be able to buy insurance on the Health Exchange.
According to a theory by John Challenger, the CEO of a global outplacement and coaching company, once older individuals could buy insurance on health exchanges; it could be a blessing in disguise for them. The prime reason older people can't find a job is because their employers do not want responsibility of their health care.
AdvertisementFor older people the cost of health care is costlier - almost five times more than that of a healthy, young adult. As employers will no longer be responsible for health care, they will prefer to employ older workers. This is one clause which may hike the demand for older workers.
Also when older people do not need to be employed for health insurance, they can opt out of the job market or pursue their own business. They are more comfortable when the risk of health insurance no longer exists. They will anyway qualify for medicare once they are 65 years old.
Hannah Punitha (IRDA Licence Number: 2710062
Catherine Rampell, Feb 2013