Turning the Clock Forward on Care: Lowering the Eligibility Age of Medicare
- Mar 7
- 3 min read
Updated: Mar 8
Research courtesy of Ishani Shah, B.S. Political Science, B.S. Public Health
A phased-in approach to bridging the coverage gap.
Medicare Coverage Age Currently at 65
Medicare is a public healthcare insurance run by the federal government that is available mainly to cover those 65 years of age and older. It is meant to provide healthcare to one of the most vulnerable populations that tend to spend themost on care, which helps to alleviate the burden to individual persons and private health insurances that would need to cover expensive and more frequent procedures for older adults. Making Medicare available at a lower age would be helpful from public health and financial perspectives, as it would help people receive earlier treatment and preventive care, which can lower medical costs in the long run and improve overall health.
Proposals to Reduce Age to 60
In 2021, there was a push to lower the eligibility age for Medicare to 60. Supported by Joe Biden and over 70 percent of the House Democratic Caucus at the time, 130 lawmakers introduced the Improving Medicare Coverage Act as part of the Build Back Better Package to lower the Medicare eligibility age by 5 years(1). It would have expanded Medicare coverage to 23 million people, 1.43 million of whom were uninsured, which was an especially pressing issue during the heart of the COVID-19 pandemic (2). Although this did not pass, it demonstrated a commitment by lawmakers to address the necessity of lowering the eligibility age of Medicare to relieve the financial strain of healthcare on vulnerable populations.
Consequences of Such Proposals
Employee premiums: As older employees shift from private insurance to Medicare, the highest spending population would be publicly taken care of. Employers would spend $26.7 billion less on health insurance, as 23 percent of those aged 60-64 with employer-sponsored insurance would switch to Medicare coverage (3). This decline in spending on the part of insurers and employers would translate into lower premiums for employees across the board (4). Reimbursement rates: Medicare has higher reimbursement rates for providers than Medicaid and no insurance, but lower reimbursement rates than private insurance. If the majority of people in the 60-64 age range that move to Medicare coverage are moving from Medicaid or uninsured status, reimbursement rates will go up. If the majority are moving from private health insurance to Medicare, reimbursement rates will go down (4). Labor costs: By lowering the Medicare eligibility age, it may incentivize older people to retire earlier. Early retirement would impact Social Security spending, making labor costs a secondary force behind budgetary changes (4). Federal spending: Adding all the potential costs, estimates for the increase in Medicare spending vary greatly: between $10 billion3 and $100 billion a year (4).
CARIN’S STANCE | Congress needs to lower the age of Medicare eligibility through a
phased-in approach, starting by lowering the age to 64, then 63, and so on. This will lessen
gridlock, protect the budget, and provide broader healthcare coverage to constituents.
By reducing the age of eligibility gradually, it protects against potential pushback from either side of the aisle and promotes a bipartisan solution, creates a more financially feasible option that would err on the lower end of the scale to implement this legislation, and eventually provide better preventive and long-term healthcare outcomes.
NOTES
Pramila Jayapal. Jayapal leads 130 lawmakers in introducing bill to lower Medicare eligibility age. Published September 3, 2021. https://jayapal.house.gov/2021/09/03/lower-medicare-age/
Sneed R. Lowering the age for Medicare eligibility: who benefits? Innovation in Aging. 2023; 7 (Suppl 1) :
641-642. Published December 21, 2023. doi:10.1093/geroni/igad104.2089
Holahan J, Banthin J, Buettgens M, Green A, Simpson M. Lowering the age of Medicare eligibility to 60.
Robert W ood Johnson Foundation. Published June 1, 2022.
Jett L. Lower Medicare eligibility age? Harvard Medical School Department of Health Care Policy.
Published June 5, 2020. https://hcp.hms.harvard.edu/news/lower-medicare-eligibility-age
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