Understanding How Pre-retirement Health Insurance Status Impacts the Health and Assets of the US Retiree Population

Abstract

Introduction: Recently, numerous countries have encountered escalating healthcare costs as older adults increasingly utilize medical services, which simultaneously impacts expenditures and health outcomes. Research has highlighted a significant correlation between financial stability and the health of retirees. However, previous studies have frequently overlooked the impact of health insurance plans, especially the private health insurance plan. To address this knowledge gap, the current study endeavors to investigate the relationships among various private health insurance programs and their impacts on the post-retirement assets and health status of retirees. Method: The study used data from the Health and Retirement Study, which includes individuals aged 59–70 years (n = 2777). Utilizing generalized structural equation modeling (GSEM), the study examined the longitudinal correlation between pre-retirement private health insurance and post-retirement asset and adjusted for race, sex, level of education, and spouse. Analysis considered the mediating influence of health status. Results: The results indicate that 71.8% of pre-retirement health insurance was obtained from current or former employers. In terms of direct effect, the study observed no significant impact of private health insurance on post-retirement asset. For total effect, individuals who directly purchased private health insurance from a company and union have 1.42 (P < 0.001) and 1.6 (P < 0.05) times higher odds ratio of obtaining more post-retirement asset compared with the reference group after accounting for the mediator, health status. However, the study found a strong and significant indirect effect through health status. Individuals who directly purchased private health insurance from companies and unions have 1.4 (P < 0.001) and 1.82 (P < 0.05) times higher odds of obtaining more post-retirement asset compared with the reference group through health status. Conclusion: The findings point to a significant relationship among private health insurance, health status, and post-retirement asset. Individuals who retired before 60 directly purchased private health insurance from insurance companies and unions tend to possess more health and post-retirement asset. Healthier individuals tend to accumulate more assets at retirement, which highlights the importance of health in financial well-being. Policymakers should consider initiatives to improve access to health insurance options to enhance health outcomes and financial security at retirement.