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
