This report examines the cost and coverage effects of lowering the age of Medicare eligibility from 65 to 60. We show that there would be improvements in health insurance coverage though these coverage gains would differ by enrollees income and current coverage. These improvements would come with a fairly large increase in federal spending and some increase in overall spending for health care services. While the drop in the uninsured is relatively small, those remaining uninsured would now have access to Part A coverage. New federal spending on Medicare for adults ages 60 to 64 would be $64.7 billion in 2023, largely because federal spending on marketplace subsidies for this group would be eliminated. The net increase in federal spending would be $44.6 billion.
Effects on Coverage and Spending