Raise Medicare eligibility to age 67? What’s not to like?

[flamingdem]

http://www.boston.com/lifestyle/health/health_stew/2012/12/raise_medicare_eligibility_to.html

As Congressional Republicans concede to the inevitability of higher tax rates on the nation's wealthiest 2%, the chorus for "entitlement reform" grows steadily, especially in Medicare. Though Republicans have been timid to state their Medicare agenda in public (Cong. Paul Ryan's voucher/premium support plan doesn't count because it would only take effect in 2022), the idea to raise the age of eligibility from 65 to 67 to enroll in Medicare is gaining traction. Some reports suggest that President Obama may be open to an "avoid the fiscal cliff" deal that includes this element.

Many media commentators seem warm to the idea. So let's consider whether this is a good idea or a bad one.

First, let's consider the arguments advanced in favor of it:

First, keeping out an estimated five million 65 and 66 year olds out of Medicare would save the federal government about $3.3 billion in 2014 and $85.6 billion over six years (2014-19), according to estimates by the Congressional Budget Office back in 2008 (see option 17 in the linked report). The Kaiser Family Foundation estimates $5.7 billion in federal budget savings in 2014. These savings would help finance an alternative to the fiscal cliff. Also, leaving these five million folks out would extend the life of the Medicare Part A Hospital Trust Fund a little longer, and that would be good.

Second, life expectancy has increased since Medicare was created, now in the upper 70s, and the program was never meant to cover so many people for so long. Increasing the eligibility age just recognizes demographic reality.

Third, the five million 65 and 66 year olds immediately affected would not be without coverage options, thanks to the Affordable Care Act/Obamacare which would enable most of them to obtain subsidized private health insurance through the Health Insurance Exchanges, state or federal, which open for business in January 2014, or through state Medicaid programs for those with low incomes (though the Supreme Court made the Medicaid expansion a state option in its June 2012 ACA ruling). more at link