Ezra Klein blog: Key health care players tentatively lean toward raising Medicare eligibility age

[flpoljunkie]

Emphasis mine

The health industry case for raising Medicare’s eligibility age
Posted by Sarah Kliff

The Obama administration suggested the new age limit during deficit negotiations as a way to cut federal costs. Yet there’s been little public discussion, from the industry perspective, of what it would mean to move about 5 million seniors out of Medicare and into private programs or for them to have no coverage at all.

I put that question to health industry sources, and several had this to say: Key health care players tentatively lean toward raising Medicare eligibility age, especially when it’s compared to other entitlement cuts that the deficit-reduction supercommittee could make. And, for some of those in the health care industry, the change could be profitable.

The Health Leadership Council, a consortium of 47 health industry leaders including Aetna, Pfizer and the Cleveland Clinic, endorsed today to raise Medicare’s eligibility age from 65 to 67, phasing in the change by two months annually. Raising Medicare's eligibility age is one proposal in a four-part package of Medicare reforms up for vote, including creating a new exchange-like marketplace and increasing the cost-sharing for seniors who earn more than $150,000. You can read the full proposal here.

The pushback on the policy proposal, rather, is likely to come from other stakeholders. States, employers and seniors would all suffer if the Medicare eligibility rules were changed. It would shift about $11.4 billion in new costs to those parties while saving the federal government only $5.7 billion, according to the Center on Budget Priorities and Policy.

“This policy does nothing to control costs,” Sen. Bernie Sanders, an independent from Vermont, wrote in a memo obtained by the New York Times. “It simply shifts substantial costs from Medicare to other parts of government and to private and public employers.”

http://www.washingtonpost.com/blogs/ezra-klein/post/the-health-industry-case-for-raising-medicares-eligibility-age/2011/09/14/gIQAJJ8sRK_blog.html

[xchrom]

1. Recommend

[ProSense]

2. Why are

"The Obama administration suggested the new age limit during deficit negotiations as a way to cut federal costs. "

...people, including Ezra, pushing something that didn't happen to justify these efforts?


Ezra: "I put that question to health industry sources, and several had this to say"

[flpoljunkie]

3. Perhaps because this powerful group will formally submit these recommendation to the supercommittee

They have many lobbyists to help sell these recommendations--not only to the supercommittee, but to Congress. Leiberman filed a bill with Tom Coburn in May to raise the Medicare age to 67.

The group will formally submit these recommendations to the supercommittee, as well as House and Senate leadership, later this week. “This is a policy action to address the shrinking ratio of active works to Medicare benefciaires,” Health Leadership Council president Mary Grealy. “We think a small, reasonable increase in the Medicare eligiblity age makes sense.”

There’s a pretty simple explanation for why hospitals and some insurers would favor raising the eligibility age: Hospitals receive higher payments from private insurance than they do from Medicare. The payments that hospitals receive from private insurers are 28 percent above the break-even point for providing treatment, according to a recent report from the Blue Cross Blue Shield Association. Medicare pays only 91 percent of what it costs a hospital to provide care.

http://www.washingtonpost.com/blogs/ezra-klein/post/the-health-industry-case-for-raising-medicares-eligibility-age/2011/09/14/gIQAJJ8sRK_blog.html

[CTyankee]

5. It seems to me that Klein is just filling in a developing story.

Ezra Klein is more on our side than not. It's good that we're getting some background information as to what is going on.

Do you have information that the White House has another idea entirely? I'm open to hearing about it...

[blueclown]

4. Instead of Medicare, they'll just go on Medicaid.

[flamingdem]

6. Which is getting stripped due to budget shortfalls (See California) nt

[wishlist]

11. Disabled who are approved for early Soc Sec get Medicare earlier already

People with serious disabilities can apply for Social Security and Medicare before the normal ages although there is a two year wait for Medicare eligibility from the month the disability is determined to have started. It is much easier for people 60 and older to get approved for SS Disability with early Medicare than for younger people to get approved for benefits.

[flamingdem]

7. There must be huge pressure to do this because in fact the Medicare age should be lowered

it must be an indirect way for Republicans to get their way..

[chill_wind]

8. recommend.

[GeorgeGist]

9. Medicare for All?

or just the dead?

[DemocratSinceBirth]

10. Think Of The Savings If You Raise It To Eighty

.