Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Cost shifting from Medicare at 60
Old 06-05-2020, 06:34 PM   #1
Recycles dryer sheets
 
Join Date: Dec 2010
Posts: 456
Cost shifting from Medicare at 60

Analysis of the proposal to put people on Medicare at age 60.

Medicare payments would rise by about 100 Billion a year, but some offset by things like less insurance costs for employers (& thus for all employees of every age), and shifting people from Medicaid to Medicare which would relieve the states from some costs. It would induce more people to retire early, so raising SS payouts ...

The reaction by medical providers to reduced income is a wild card.

https://jamanetwork.com/journals/jam...rticle/2766798

Viewpoint
May 29, 2020
Potential Implications of Lowering the Medicare Eligibility Age to 60
Zirui Song, MD, PhD1,2
Author Affiliations Article Information
JAMA. Published online May 29, 2020. doi:10.1001/jama.2020.7245

>
A 2018 analysis by the Congressional Budget Office of a mirror-image proposal (ie, raising the Medicare eligibility age from 65 to 67 years) estimated that 60% of the federal savings to Medicare and Social Security attributable to removing this 2-year age band from Medicare would be offset by increased federal spending on subsidies in the ACA Marketplaces and on Medicaid.6

If a similar offset holds for lowering the age of eligibility, then the federal costs for lowering the eligibility age to 60 years could be as low as $40 billion a year for the 20 million new Medicare beneficiaries.

If the offset is smaller in reverse, in part because the share of people aged 60 to 64 years in Medicaid today (source of savings) is less than the share of Medicare beneficiaries aged 65-67 years predicted to go to Medicaid (source of costs) under the mirror image proposal, then the federal costs would be higher than $40 billion.

This does not account for the increased Social Security spending or additional federal tax revenues above, which are likely to be several billion dollars each.

SNIP

Of note, however, more than one-third of Medicare beneficiaries now enroll in Medicare Advantage, in which private insurers can offer more tailored Medicare plans with a government subsidy. To the extent new 60- to 64-year-old Medicare beneficiaries enroll in Medicare Advantage plans, it would blunt the contraction in private insurer membership and revenue and soften the otherwise starker political contrast between government and private insurance.
>
__________________

Bongleur is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-06-2020, 08:15 AM   #2
Recycles dryer sheets
 
Join Date: May 2015
Location: Someplace Warm
Posts: 142
Thanks for this interesting analysis. If these estimates reflect the actual numbers, then they would pale in comparison to the amounts being given out through the various stimulus packages, and indirectly through the Fed. Considering that the virus affects the elderly more than younger folks, and costs for treatment can be high, this could be a good step to stabilize the situation for this group. In this context, also structural unemployment in this age bracket is much harder to remedy, and having health insurance covered by Medicare could blunt this effect as well.
Leo1277 is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Trend towards high deductible plans, cost-shifting/cost-sharing explanade Health and Early Retirement 33 12-26-2015 09:25 PM
Question about shifting stock funds out of IRA joesxm3 FIRE and Money 4 12-19-2007 03:34 AM
Shifting from W2 to 1099 consulting Kronk FIRE and Money 21 10-14-2007 12:49 PM
Shifting funds in a Vanguard ROTH danm FIRE and Money 18 01-23-2006 02:07 PM

» Quick Links

 
All times are GMT -6. The time now is 11:23 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×