The ferocious pushback on a trial balloon offer to raise the Medicare eligibility age continues, now at a very high level. First, adding to something started over the weekend by the Center for American Progress’ Neera Tanden, the think tank put out a white paperrejecting raising the eligibility age, because it would “harm seniors and increase health care spending.” I don’t think you have to say much more than that. But here’s the key point:
Using 2011 census data to add to existing Congressional Budget Office calculations, we estimate that in a single year, almost 435,000 seniors would be at risk of becoming uninsured. Our estimate is conservative and understates the impact of raising the eligibility age because the number of seniors affected will only continue to grow over the next decade as the boomer generation retires.
They fully explain the methodology for arriving at this number in the report. Consider that we know that certain percentages of the uninsured die from lack of coverage. The American Journal of Public Health study most frequently cited shows 45,000 deaths annually from a lack of coverage. That’s in a pool of around 50 million uninsured, or a little less than 1%. So this plan to raise the eligibility age, based on those numbers, would kill as many as 4,000 senior Americans, every year (maybe more, as this is a sicker population). I’m sorry to be crass about this, but those are the stakes.
In addition to CAP, House Democratic Leader Nancy Pelosi published her own opposition to raising the eligibility age in USA Today.
Raising the Medicare eligibility age is a case in point. On paper, it appears to save money for the federal government. In practice, it simply shifts the cost of health care to newly uninsured 65- and 66-year-olds, forcing them to pay more for their care out of their own pockets. It makes older Medicare beneficiaries pay higher premiums.
Under the Republican plan, it shifts costs to employers who wish to do right by their workers and cover their retirees for two additional years. It adds costs to states, as low-income seniors find themselves forced to seek out coverage through Medicaid.
It raises premiums for younger Americans who don’t receive insurance through their jobs and who are set to purchase coverage through new insurance exchanges. It asks them to foot the bill to cover the cost of insuring the many 65- and 66-year-olds who would enter the system at the same time [...]
Put another way: raising the Medicare age asks the most vulnerable citizens to pay more with little to show for it in terms of long-term deficit reduction or more affordable care, for seniors or anyone else. It increases health spending across-the-board. It takes money out of the pockets of a small slice of Americans.
Pelosi’s being a good soldier by calling this “the Republican plan.” In reality, this makes it extremely difficult for any Democrats to carry this plan forward, at least if they expect to get votes of Democrats in the House (which they will probably need, since a substantial chunk of anti-tax Republicans will never vote for a deal that increases tax rates).
Given this fire against raising the eligibility age, I would expect similar scorn for ideas like cutting Supplemental Security for children with disabilities (heretofore known as the “clueless pundit Nick Kristof plan”), or using a “blended rate” for federal Medicaid participation, which amounts to a cut in funding. Chatter has increased on using the chained CPI to change the cost-of-living adjustment over a variety of federal programs, but when everyone realizes this constitutes a real benefit cut, mostly for the poor, but also for veterans benefits, as well as a regressive tax hike, I doubt that chatter will last too long.
None of which is to say that any of these ideas are truly dead.





21 Comments

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People have got to stand up. Social Security, Medicare, and Medicaid have ABSOLUTELY NOTHING to do with Bush Tax cuts for the rich!
It should not even be an option on the table.
If I were in the halls of Congress here is what I would tell the republiCONS:
Ya want negotiations, well here ya go. Let’s start here with Medicare for All. Social Security begins at age 50, and Medicaid is replaced by Medicare for all with Vision, Dental, and Hearing benefits. The money will come from REMOVING the contribution cap. That’s right, No CAP at all. No playing games with the type of income either. ALL INCOME! Do you hear me? ALL INCOME, be it capital gains, trusts, inheritance, and any other description. It should not ever be limited to just wages of the labor class!
So, where do you want to start? We can negotiate. I may consider a cap somewhere in the millions
Why.Should. We. TRust. Them??
Maybe CAP was just trying to put on a good Dem facade after the Brookings report recommending cuts. Pardon my suspecting their motives. And because of this……
The business leaders are in agreement to make a deal on eliminating tax cuts for the top income earners. What did the Dems trade them for that?
Obama vows to take a ‘balanced’ approach over and over. Must mean we are going to reward the plutocrats instead of making them pay their fair share. He has a terrible track record on this. And on Social Security too.
It does not sound promising.
The upper wage limit for Medicare payroll taxes was eliminated in 1994.
Here’s what Pelosi said on CBS This Morning:
Later she expanded on this:
Sounds like Democrats will object strenuously, blame the Republicans … and then go ahead and gut the safety net. As usual.
Maybe it all has to do with Boehner waiting to be re-upped as Speaker on January 3rd?
Yep, business as usual for the demodogs screwing over Main Street for the puppet masters.
Millionairs, Traders, and Investment Income is not taxed.
Please bring your link.
Even if the elibility age doesn’t get officially put back on the table in this round of “negotiations” we need to be mindful of what has happened.
Obama introduced it in 2011, now we have a powerful Democratic Senator, a few bloggers, putting it forward, starting the conversation. By the time of the next crisis, ACA as an acceptable substitute to Medicare is one of those “even Sen X” or “even name-your-think-tank” ideas, and we’ve lost the framing.
No matter what the incremental safety net destroying proposal of the momement, we should always have the best alternative (Medicare for All, VA care for All, enhanced SS benefits) as the starting point of our demands.
I would like to see a public option. The AFL-CIO has called for putting that back on the table. People are too scared to ask for what they know would be fair. That is sad.
I would like to see all kinds of income taxed at the regular income tax rates. Anything else is upward income redistribution to the already wealthy. Meanwhile, how do we get equal access to quality health care?
Exactly!
We have to stop being framed, and start FRAMING the needs in a way that cannot be swished into a dust pan.
The most critical thing we can do in America right now is to ensure that people have the safety of social programs. If not, that will be a real effect on the Security of this Country.
Hi Marym! Thanks for plugging away on this issue. How do we get equal access to care when rich people buy their own private doctors and upper middle class folks keep a doctor on a retainer?
How can we regular folk get equal access to care? How can my doctor be responsible for tens of thousands of cases and read the report sent to him by a specialist I saw?? It doesn’t add up. It won’t work. Someone somewhere has made a decision that we are not going to get medical care. This is totally unacceptable.
My local hospital made tons of money last year and is doing well financially. Follow the money. The same blood test cost me $75 dollars in a group testing setting and 268 dollars at that hospital. A 99 dollar MRI in Japan costs near a thousand dollars here in the U.S.. Our money does not go into paying for quality, accessible healthcare.
“Upward income redistribution”
You said it! Nothing Constitutional, fair or equal about it. Say it loud and often.
Healthcare/Medicine and Insurance are HUGE capitalist businesses. It’s sole reason for being is profit, and not to keep a nation healthy and free from illness.
DDay, do you really think this is Pelosi’s intent? I get e-mails every day from assorted Dems and others calling the cuts “the Republican plan,” and I want to scream back at them, “It’s Obama’s plan too, you nimrods.”
And what are all these Dems going to do when Obama calls and reminds them how he “needs” their vote to effect this Grand Betrayal, [just like he "needed" their vote to give him a "victory" on ACA]? He’s got control of the DNC money and OFA data base; he’s not going to be any more “generous” to them in 2014 than he was in 2010. OTOH, House members ought to remind themselves that THEY’RE on the ballot in 2014; Obama’s not.
I think we all should be writing to our Congress-servants, reminding them that WHOEVER puts forth this vile proposal — it should be voted down.
The indifference of Our Rulers to the effects of their policy prescriptions to their artificial precipice must be recognized for what it is: homicidal cruelty.
I think I have figured exactly HOW we got into this mess.
Last presidential election the repubulicans had TWO candidates running and the democrats had ZERO.
Everything they do in DC these days has to do with someone’s profit at the expense of someone’s else’s life and well being.
Rich people don’t need Medicare, and what’s good for the rich is good for America.
The goal of the rich is for “those people” old farts to give all their assets to the healthcare industry, and then be forced to apply as paupers for Medicaid – just like they must do to stay in nursing homes today. (FYI: Medicare doesn’t pay for nursing homes, dental, hearing aids, costs $1,200 a year in premiums and you pay 20% of doctor bills and a grand when you enter the hospital.)
Our deficit is huge due to unfunded wars, tax cuts for the wealthy and the near-decimation of the economy by greedy banks and Wall Street. Yet the poor and middle class are the ones they want to punish for this by raising eligibility age for medicare? How the hell is that supposed to help fix the deficit? And do they realize the money taken to pay for insurance by people 65-66 will be money taken OUT of the general economy (no retail purchases)?
I’m in Michigan and still reeling from yesterday but every single day it’s something new to screw the poor and middle class and I don’t see how anyone could NOT expect a revolution from all this….
What’s more, you paid 2.9% of your income for the last 30 years to get this fine coverage, and your premiums only pay 25% of expenses, the rest is transferred from the general fund and adds to the deficit.
Revolution or what? What’s the latest anyway with Kim Kardasian and Lindsey Lohan? They know the sheeple will do NOTHING.
Bingo! Protecting the elite class money and profits is the name of the game. It’s the only thing that is transparent in Washington.