Urban Institute Update
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Raising the Medicare eligibility age to 67
Policymakers are considering increasing the Medicare eligibility age from 65 to 67. This change, however, is more complicated than the similar adjustments to other government programs like Social Security.
Urban researchers assess that of the 6.9 million people ages 65 and 66 who now have Medicare, 1.5 million would stay because of disability, while 5.4 million would leave the program.
For those who may leave Medicare:
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6 percent would be uninsured
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2.7 million would change to employer coverage
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1.2 million would have nongroup coverage
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1 million would have Medicaid
Federal savings from the age increase would be limited because Medicare would continue to cover the relatively costly disabled population and because of the associated costs of people shifting to Marketplace coverage with premium tax credits and Medicaid programs. Additionally, national health spending would increase.
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