Wednesday, April 28, 2021

How Lowering the Medicare Eligibility Age Might Affect Employer-Sponsored Insurance Costs

How Lowering the Medicare Eligibility Age Might Affect Employer-Sponsored Insurance Costs

 

A new analysis finds that lowering the age of Medicare eligibility to 60 could reduce costs for employer health plans by as much as 15% if all eligible employees shifted from employer plans to Medicare. Similarly, costs for employer plans could drop by as much as 30% if all people age 55 and over were no longer in employer-sponsored insurance, the analysis finds, and by up to 43% if everyone 50 and older chose to enroll in Medicare.

A second, related analysis shows how 60- to 64-year-olds who move from employer plans to Medicare could be covered more cheaply because Medicare payments to hospitals, physicians and other health care providers are generally lower than what private insurance pays.  (News Release, Issue Brief)

 


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