In healthcare today, a person could retire at 65 and be eligible to receive Medicare coverage. Since 1965, when Medicare was established, the average remaining life expectancy for a man and woman has increased by more than four years. Now, a 65-year-old man could live another 18.1 years and a 65-year-old woman, another 20.6 years. Due to this increase, it has been proposed that the eligibility age for Medicare will raise to 67. According to the Congressional Budget Office (2016), “This option would raise the age of eligibility for Medicare by two months each year, starting in 2020 (people born in 1955 will turn 65 that year), until it reaches 67 for people born in 1966 (who would become eligible for Medicare benefits in 2033)” (p. 250).
Although, raising the Medicare eligibility age seems like a good idea due to the increase in life expectancy, it actually will be very harmful for seniors. Many of the 65 and 66 year olds waiting to hit the new eligibility age would become uninsured. “When the Medicare eligibility age is increased, the Congressional Budget Office estimates that about 5 percent of the seniors affected, or 270,000 individuals, would become uninsured” (Calsyn & Rosenthal, 2012). Some uninsured 65 year olds, who would normally be eligible for Medicare, would now have to turn to Medicaid until they turn 67. The CBO also estimated about 25 percent of the people turning to Medicaid. For those 65 year olds who would have to turn to Medicaid, they would now have a much more difficult time finding services from specialist that would be covered if they had Medicare.
An increase in eligibility age would shift costs that were paid by Medicare to individual people, employers, and other government health insurance programs. State spending would increase because now Medicaid would be covering all health care expenses instead of sharing the expenses with Medicare, who would be the primary payer for someone with both Medicaid and Medicare coverage. Employers, who provide coverage for their retirees, would also see a cost increase. They too would have to remain the primary payer until their retirees reach the new eligibility age. According to Van De Water (2011), Medicare beneficiaries over age 67, as well as people under age 65 who buy insurance through the new health insurance exchanges, would face higher premiums because those 65 and 66 year olds would be added to the exchanges.
When Medicare was established, the primary goal was to be able to provide insurance for individuals in the end stages of their life. With the increase of life expectancy, was is defined as “the end stages of life” has changed. Increasing the eligibility age for Medicare to 67 will increase the rate of individuals who are uninsured and increase cost for almost everyone else. 65 and 66 year olds would either be uninsured, get coverage from Medicaid, continue to use the retirement coverage from their former employment (or spouse’s), or get coverage from another program with a much higher premium. Raising the eligibility age would increase health care cost and have a negative impact on those 65 and 66 year olds who are preparing to enter into the last stages of their lives.
Although, raising the Medicare eligibility age seems like a good idea due to the increase in life expectancy, it actually will be very harmful for seniors. Many of the 65 and 66 year olds waiting to hit the new eligibility age would become uninsured. “When the Medicare eligibility age is increased, the Congressional Budget Office estimates that about 5 percent of the seniors affected, or 270,000 individuals, would become uninsured” (Calsyn & Rosenthal, 2012). Some uninsured 65 year olds, who would normally be eligible for Medicare, would now have to turn to Medicaid until they turn 67. The CBO also estimated about 25 percent of the people turning to Medicaid. For those 65 year olds who would have to turn to Medicaid, they would now have a much more difficult time finding services from specialist that would be covered if they had Medicare.
An increase in eligibility age would shift costs that were paid by Medicare to individual people, employers, and other government health insurance programs. State spending would increase because now Medicaid would be covering all health care expenses instead of sharing the expenses with Medicare, who would be the primary payer for someone with both Medicaid and Medicare coverage. Employers, who provide coverage for their retirees, would also see a cost increase. They too would have to remain the primary payer until their retirees reach the new eligibility age. According to Van De Water (2011), Medicare beneficiaries over age 67, as well as people under age 65 who buy insurance through the new health insurance exchanges, would face higher premiums because those 65 and 66 year olds would be added to the exchanges.
When Medicare was established, the primary goal was to be able to provide insurance for individuals in the end stages of their life. With the increase of life expectancy, was is defined as “the end stages of life” has changed. Increasing the eligibility age for Medicare to 67 will increase the rate of individuals who are uninsured and increase cost for almost everyone else. 65 and 66 year olds would either be uninsured, get coverage from Medicaid, continue to use the retirement coverage from their former employment (or spouse’s), or get coverage from another program with a much higher premium. Raising the eligibility age would increase health care cost and have a negative impact on those 65 and 66 year olds who are preparing to enter into the last stages of their lives.
- Calsyn, M., & Rosenthal, L. (2012). Raising the Medicare Eligibility Age Would Harm Seniors and Increase Health Care Spending. Center for American Progress. Retrieved from https://www.americanprogress.org/issues/healthcare/reports/2012/12/11/47645/raising-the-medicare-eligibility-age-would-harm-seniors-and-increase-health-care-spending/
- Congressional Budget Office. (2016). Options for Reducing the Deficit 2017 to 2026. Retrieved from https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/52142-budgetoptions2.pdf
- Van De Water, P. N. (2011). Raising Medicare’s Eligibility Age Would Increase Overall Health Spending and Shift Costs to Seniors, States, and Employers. Center on Budget and Policy Priorities. Retrieved from https://www.cbpp.org/research/raising-medicares-eligibility-age-would-increase-overall-health-spending-and-shift-costs-to