Raising the Medicare eligibility age won't just affect older workers... it could ripple all the way down the career ladder. If senior citizens can't sign up for Medicare until age 67, many will likely stay on the job longer so they can keep their health insurance.
Full Answer
Would raising the Medicare eligibility age help or would it just leave a large number of retirees without healthcare coverage?
But raising the age of eligibility for Medicare would substantially boost out-of-pocket costs for 65- and 66-year-olds, which many of them with modest incomes could have difficulty affording, prompting some to become uninsured and others to forgo needed care. It also would raise health care costs overall.
Will Medicare eligibility age be lowered?
Lowering the eligibility age is no longer part of the U.S. Government's budget for Fiscal Year 2022. So, the Medicare eligibility age will not see a reduction anytime in the next year.
What are two major problems with respect to the future of Medicare?
Financing care for future generations is perhaps the greatest challenge facing Medicare, due to sustained increases in health care costs, the aging of the U.S. population, and the declining ratio of workers to beneficiaries.
Does Medicare increase with age?
Some Medicare Supplement insurance plans (also known as Medigap) offer an attained-age pricing structure where premiums are based on the beneficiary's age. This means the plans may be priced lower than other policies when you first enroll, but the premiums increase as you get older.
What happened to lowering the Medicare age to 60?
Lowering Medicare eligibility to age 60 would cost $380 billion over 10 years—even after accounting for Affordable Care Act savings from lower spending on subsidies and assuming that employers continue to offer health insurance to those newly eligible for Medicare.
Will Medicare get lowered to age 60?
More than 125 House lawmakers introduced legislation Friday that lowers the Medicare eligibility age to 60 from 65. The Improving Medicare Coverage Act — led by Reps.
What are the cons of Medicare?
Cons of Medicare AdvantageRestrictive plans can limit covered services and medical providers.May have higher copays, deductibles and other out-of-pocket costs.Beneficiaries required to pay the Part B deductible.Costs of health care are not always apparent up front.Type of plan availability varies by region.More items...•
What are the challenges of Medicare?
Medicare's challenges are not solely financial. Medicare beneficiaries are a diverse group with diverse health care needs, and certain beneficiary populations—such as those with a disabilities or multiple chronic conditions—are particularly vulnerable to having high health care needs.
Who paid for Medicare?
Medicare is funded by the Social Security Administration. Which means it's funded by taxpayers: We all pay 1.45% of our earnings into FICA - Federal Insurance Contributions Act - which go toward Medicare.
What would raising the retirement age do?
American life expectancy is decreasing, not increasing. Instead of protecting future generations, raising the retirement age will dramatically cut benefits for younger generations of workers, especially those at lower-income levels.
Why is my Medicare premium so high?
Medicare Part B covers doctor visits, and other outpatient services, such as lab tests and diagnostic screenings. CMS officials gave three reasons for the historically high premium increase: Rising prices to deliver health care to Medicare enrollees and increased use of the health care system.
Can I get Medicare at 55?
Generally, Medicare is available for people age 65 or older, younger people with disabilities and people with End Stage Renal Disease (permanent kidney failure requiring dialysis or transplant). Medicare has two parts, Part A (Hospital Insurance) and Part B (Medicare Insurance).
What would happen if the Medicare eligibility age was raised?
Fact: Raising the Medicare Eligibility Age Would Leave Many People Uninsured, with Higher Out-of-Pocket Costs
What percentage of Americans are against raising the Medicare eligibility age to 67?
A new poll this week shows that 67% of Americans are opposed to raising the Medicare eligibility age to 67, with strong opposition surpassing strong support by a 3-1 margin. [12] The new data shows the opposition is shared by the majority of Democrats and Republicans, with at least 68% of each expressing opposition- a bipartisan consensus.
How much would Medicare premiums increase in 2014?
Similarly, Medicare beneficiaries with coverage would face $1.8 billion in higher premiums because the younger and relatively healthier 65 and 66 year old beneficiaries would be taken out of the program's risk pool. Medicare beneficiaries would also see their premiums rise by 3% if the eligibility age is raised. [6]
What would happen if Medicare was raised to 67?
In fact, the life expectancy for African-American men is only 70.8 according to recent data. [9] Raising the age to 67 would seriously affect diverse communities : 34% of Hispanics and 26% of African-Americans aged 65 and 66 would become uninsured, rates over four times hgher than non-Hispanic white Americans in the same age group. In addition, 23% of Americans with incomes below 200% of the poverty line would become uninsured. [10] Blue-collar workers with physically demanding jobs who are unable to delay retirement would also be significantly harmed. [11]
How can we save money on Medicare?
There are real ways to save money in the Medicare program that would extend its solvency and lower costs for beneficiaries at the same time . [13] Just one of those proposals – allowing drug prices to be negotiated in the Medicare program – would save an estimated $156 billion over ten years; savings more significant than those gained by raising the eligibility age. [14] Policymakers who are serious about reducing overall health care costs, the real culprit driving high spending across the system, should consider proposals that work toward improving health coverage and outcomes while lowering costs for payers and beneficiaries. [15] Simply shifting costs onto beneficiaries while ignoring the real potential for savings in areas like pharmaceutical prices is both short-sighted and fails to address overall health spending.
Is raising the Medicare eligibility age more expensive than saving it?
Fact: Raising the Medicare Eligibility Age Would Cost More Than It Saves
Does raising the age save money?
Raising the age may seem to yield federal savings, but those costs are not truly saved, merely shifted to states, employers, individuals and Medicare beneficiaries who already face high health costs and who cannot afford this added burden.
What would happen if Medicare was raised to 70?
If the age were raised to 70, a 69-year-old dual eligible would lose their Medicare coverage. And it’s true that this would reduce the number of dual-eligible beneficiaries nationwide, which would also save on healthcare costs.
Is a later age for Medicare ineffective?
The researchers found that a later age for Medicare eligibility would be ineffective due to a group known as dual eligible beneficiaries (dual eligibles). These are people enrolled in both Medicare and Medicaid.
How would raising the eligibility age affect Medicare?
By shrinking Medicare’s share of the health insurance market, raising the eligibility age would reduce Medicare’s market power and weaken its ability to serve as a leader in controlling health care costs. Medicare has a proven track record of providing low-cost health care to seniors.
What would happen if the age of eligibility for Medicare was raised?
Raising the age of eligibility for Medicare would shift costs to Medicare beneficiaries, employers, and the states. In 2011, the Kaiser Family Foundation, in a report titled Raising the Age of Medicare Eligibility: A Fresh Look Following Implementation of Health Reform, http://kff.org/medicare/report/raising-the-age-of-medicare-eligibility/, and the Center on Budget and Priority Policies, in a paper, Raising Medicare’s Eligibility Age Would Increase Overall Health Spending and Shift Costs to Seniors, States, and Employers , https://www.ncpssm.org/wp-content/uploads/2017/08/8-23-11health.pdf, described who would incur the new health care costs associated with this shift. They are:
Why is Medicare being advanced?
It is being advanced solely for budgetary considerations – to reduce the rate of growth in Medicare spending – with little regard for the harmful consequences for Medicare beneficiaries who have paid into the program during their working lives and count on receiving Medicare.
How much will Medicare save in 2023?
With respect to savings, increasing the Medicare eligibility age to 67 only benefits the federal government; and a 2013 Congressional Budget Office (CBO) analysis lowered the amount of estimated savings from $113 billion over ten years to $19 billion from 2016 to 2023, or $3 billion per year.
What age group would lose Medicare?
They are: 65- and 66-year-olds who would lose Medicare coverage and would, on average, face higher out-of-pocket health care costs. Two-thirds of this group – 3.3 million people – would face an average of $2,200 more each year in premiums and cost-sharing charges. Medicare beneficiaries over age 67, as well as people under age 65 who buy insurance ...
How long do you have to wait to get Medicare?
But now, some in Washington who are looking for ways to reduce federal spending want to make seniors wait for up to two additional years – to age 67 – in order to qualify for Medicare.
When can seniors get medicare?
Since the program’s inception in 1965, America’s seniors have been able to count on receiving Medicare when they reach age 65. But now, some in Washington who are looking for ways to reduce federal spending want to make seniors wait for up to two additional years – to age 67 – in order to qualify for Medicare. ...
Raising the Medicare eligibility age would increase the number of uninsured seniors
Studies that have modeled the effects of raising the Medicare eligibility age on access to insurance coverage have assumed that the majority of seniors would find alternate coverage because of the Affordable Care Act, either through the exchanges—new marketplaces where individuals and businesses will be able to purchase insurance—or the Medicaid expansion.
Raising the eligibility age worsens the crisis of rising health care costs
Supporters of raising the eligibility age for Medicare consider only the federal government’s bottom line, but they should be looking at the nation’s overall health care costs.
Raising the eligibility age increases costs for both seniors and younger health care consumers
A significant percentage of 65- and 66-year-olds who lose Medicare coverage would subsequently obtain coverage though the health exchanges. But shifting their coverage from Medicare to plans offered through the exchanges is not sound policy.
Conclusion
Raising Medicare’s eligibility age was never a good idea. One goal of the Affordable Care Act was to lower health care costs, but raising the Medicare eligibility age would actually increase health care costs.
Why do providers oppose Medicare?
Providers strongly oppose the measure, partially because they say Medicare rates are too low. By the numbers: Employer health plan spending would plummet if it no longer included older enrollees, a second KFF analysis found.
Does private insurance pay more than Medicare?
The big picture: Private insurance often pays several times more than Medicare for the same services. The gap in rates is growing. That means employer coverage keeps getting more expensive — and that money ultimately comes out of the pocket of employers, employees and taxpayers.
Will the White House lower prescription drug prices?
The White House is unlikely to include a major effort to lower prescription drug prices in its upcoming legislative package, the Washington Post and the Wall Street Journal reported yesterday.