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Sorry, but Your Early Retirement Isn’t My Emergency: The Subsidy Cliff Truth Bomb

AP Photo/Matt Rourke, File

Here we go again: Democratic politicians are flooding social media with sob stories about early retirees who are suddenly staring down massive health-insurance bills. The common thread? These folks were getting enormous Obamacare subsidies so generous that their premiums were practically pocket change. Now that those subsidies are set to expire (or be scaled back), their 'real' premiums are kicking in, and the sticker shock is being spun as a crisis.

We can safely make a few assumptions about this couple. They’re clearly under 65, or they’d already be on Medicare. They’ve also been retired long enough to have grown 'accustomed' to dirt-cheap premiums, meaning the enhanced subsidies have been propping them up for at least a year or two. Bottom line: they retired in their very early 60s—a lifestyle most people can only dream of. Expecting the still-working majority to keep subsidizing their golden years through ever-larger Obamacare handouts is quite the sense of entitlement.

It's rich. The same older Americans who love to gripe about 'lazy millennials on food stamps' suddenly discover the horrors of personal responsibility when their own generous Obamacare subsidies run dry. This couple apparently can't scrape together an extra $2,500 a month for a single year before Medicare kicks in—yet they somehow thought they had enough saved to retire in their early 60s? Newsflash: if one year of real insurance costs blows up your retirement, you didn't actually have enough to retire. You just got hooked on someone else's money and called it a nest egg.

Also, true. When you are in your 60's, your health insurance would be higher than others. That's just the reality. 

Apparently, they both retired because if one of them were still working, they could have covered both of them on an employers health insurance plan. 

Ultimately, if you're going to retire years before Medicare eligibility, you need to plan for actual healthcare costs—not cross your fingers and hope taxpayers keep picking up the tab. Expecting working Americans to indefinitely subsidize your early exit from the labor force isn't compassionate policy; it's entitlement dressed up as compassion.

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