Research Report Raising the Medicare Eligibility Age with a Buy-In Option
Subtitle
Can One Stone Kill Three Birds?
Richard W. Johnson
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Gradually increasing the Medicare eligibility age to 67, while allowing people age 62 to 66 to buy into the program, could potentially address three pressing public issues. This approach could reduce Medicare costs, improve insurance coverage among older adults younger than 65, and increase labor supply at older ages. However, simulations show that cost savings would be modest and, unless the buy-in option were heavily subsidized for low-income adults, many older African Americans, Hispanics, and poor adults would be left uninsured. Nonetheless, delaying eligibility would strengthen work incentives and help the nation meet the challenges of an aging population.
Research Areas Health and health care Aging and retirement
Tags Economic well-being Pensions Medicare Medicare and private health insurance Health insurance Retirement policy
Policy Centers Income and Benefits Policy Center