Raising the eligibility age for Medicare from 65 to 67 in 2014 would save the federal government $7.6 billion in 2014 but would increase out-of-pocket costs for dropped beneficiaries by approximately $5.6 billion, according to release by the Kaiser Family Foundation.
The higher age limit, suggested by several recent deficit-reduction plans, would also increase the number of the uninsured and raise state Medicaid expenditures by $700 million, the Kaiser study found.
In addition, the change would raise premiums by 3 percent for the remaining Medicare beneficiaries, who would be older and have a greater need for medical services. Conversely, the arrival of 65- to 67-year-olds, who have a relatively greater need for medical services than younger people, in the new insurance exchanges planned under healthcare reform would raise premiums for everybody in the exchanges by 3 percent.
While most beneficiaries ages 65-66 would have higher out-of-pocket spending outside of Medicare, the Kaiser study found that almost one in four would actually have lower out-of-pocket spending, but only if health reform stayed in place.
Read the Kaiser Family Foundation release on Medicare coverage.
Read more coverage of plans to alter Medicare eligibility:
– Federal Deficit Panel’s Draft Report Includes Fee-Fix, Cuts for Hospitals
– Federal Debt Panel Proposes 20 Major Cuts for Hospitals, Physicians
– Separate Deficit Panel Releases Report, Pushes More Costs Onto Medicare Beneficiaries
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
