Who Pays? More on the Impact of Raising the Medicare Eligibility Age

In a post last week, I wrote about the Congressional Budget Office’s new projection that raising the age of eligibility for Medicare from 65 to 67 could save the federal government $113 billion over the next decade. But I missed a big part of the story: that this savings might be far outweighed by increased costs to senior citizens, employers, and state governments.

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Raising Retirement Age Could Save $230 Billion Over Next Decade

In 1950, there were 7 people of working age – 20 to 64 – for every person 65 or older. That ratio is currently below 5 and will fall below 3 by 2030. – CBO, 2012

The current age at which someone becomes eligible for Medicare, the federal government’s health insurance program for seniors, is 65. Guess what the age was when Medicare was created in 1966? Continue reading