Saturday, December 8, 2012

Republican increase in Medicare Age Costs Business and others almost Twice as Much...but save government money.

Republicans will cost business big time when it comes to health care benefits for their workers.

How? By increasing the age seniors can join Medicare. Republicans are driven to cut back on those entitlements that discourage people from working into their 90's. We're Americans, and we don't die in our 60's, we don't get sick or disabled, and we certainly can work until we do finally die. 

Here's Ezra Klein with the details of how raising the Medicare age from 65 to 67 will shift and double the cost to Americans. And even more outrageous, Democrats will agree to it as a pointless "bone to throw" to Republicans, just so they can be happy. 

Among the cost shifts identified in a Kaiser study:
• Higher monthly premiums for seniors on Medicare. Their costs would go up because keeping younger, healthier 65- and 66-year-olds out of Medicare’s insurance pool would raise costs for the rest. The increase would be about 3 percent when the higher eligibility age is fully phased in.

• Higher premiums for private coverage under Obama’s health overhaul. That’s because older adults would stick with private insurance for two extra years before moving into Medicare. Compared with younger adults, they are more expensive to insure.

• An increase in employer costs because older workers would try to stay on company insurance plans.

• Higher out-of-pocket health care costs for two out of three older adults whose entry into Medicare would be delayed.

The Congressional Budget Office has also projected an increase in the number of uninsured.  Then there’s the impact on people with physically demanding jobs, for whom extending their working years may be difficult. Still, the idea isn’t going away.

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