Fittest loser
Article updated: 10/25/2013 7:42 AM

CBO: Raising Medicare age produces small savings

Raising the eligibility age for enrolling in Medicare won't produce nearly the cost savings that had been assumed previously, said a new report issued Thursday.

Raising the eligibility age for enrolling in Medicare won't produce nearly the cost savings that had been assumed previously, said a new report issued Thursday.

 
 1 of 1 
 
text size: AAA
By Associated Press

WASHINGTON -- Raising the eligibility age for enrolling in Medicare won't produce nearly the cost savings that had been assumed previously, said a new report issued Thursday.

The Congressional Budget Office analysis says that phasing in an increase in the eligibility age from 65 to 67 years old would lower the budget deficit by just $19 billion over the coming decade. Savings would rise more in future years, however.

Advertisement

The CBO report says many people who otherwise would be on Medicare would be eligible for subsidies under the new health care law and that many others would receive primary coverage through their employer or their spouse's employer. And those entering the program at 65 or 66 are, on balance, healthier than other enrollees.

Raising the retirement age is a proposal embraced by budget hawks, particularly Republicans seeking to lower the program's unsustainable growth. But Democrats and advocates for senior citizens like AARP oppose the idea and it's a non-starter in the current round of budget negotiations getting under way in Congress.

A CBO study last year predicted the eligibility age increase would generate $113 billion over a decade.

Raising the eligibility age would produce significantly greater savings after it is fully phased in. CBO's study assumed the phase-in would track the implementation of an increase in the Social Security retirement age to 67.

Looking further ahead, CBO predicts that by 2038 the age hike would cut Medicare costs by about 3 percent compared with current law.

Comments ()
We are now using Facebook comments to offer a more inclusive, social and constructive discussion. Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.

This article filed under

Business Video
Area Business Calendar

BusinessDirectory

Connect with a business or service in your area fast. First select a town, then enter a search term or choose one of the listed popular searches:

Don't see your town listed? Visit our full directory to begin your search.

MostViewed

Today
Yesterday
Most Commented
Top Jobs

    View all Top Jobs Place a job ad

    DHExtras

       
    • Newspaper next section - Newspaper next section Report card checker - report card checker
    • Dh innovation award 2 - Dh innovation award 2 Zillow /real estate page
    • Discuss refer On Guard series
    • Newspaper archives -- Monday or anyday Mike North

    FacebookActivity