Medicare reforms have been floated for years but have largely failed to gain traction due to the widespread use of the program.

One possible reform provision introduced by the Republican Study Committee would gradually raise the Medicare eligibility age from 65 to 67, to more closely align with the eligibility rules governing Social Security claiming.

We asked two professors and authors of ALM’sTax Facts with opposing political viewpoints to share their opinions about proposals to increase the Medicare eligibility age from 65 to 67.

Below is a summary of the debate that ensued between the two professors.

Their Votes:

Byrnes

Bloink

Their Reasons:

Byrnes: It's time that our Medicare system be modified to reflect the reality in this country. Older Americans are working longer than ever before and thus remain eligible for employer-sponsored coverage.

Medical advances have also increased life expectancy rates and make it much more likely that individuals will remain healthy later in life. We've already increased the Social Security full retirement age to reflect that reality. There's no reason why the arbitrary eligibility age of 65 should remain in place forever.

Bloink: Increasing the Medicare eligibility age would create a system where millions of older Americans would become uninsured or vastly underinsured during a two-year period in life where they’re extremely likely to need medical care.

Medicare coverage is much more comprehensive than most private insurance, where individuals often struggle with high deductibles and minimal coverage — remembering that the GOP has spent years doing everything they can to gut ACA protections.

Byrnes: The federal government spends billions of dollars each year on Medicare funding. Often, beneficiaries continue to work and remain eligible for employer-sponsored coverage — and many only elect to switch over to Medicare because of the significant complications that arise in delaying enrollment.

We should focus on reducing those complications and encouraging Americans to take advantage of non-government-subsidized health insurance options for as long as possible.

Bloink: Medicare exists for a reason — the fact of life is that health costs increase as taxpayers age. Sure, some older Americans will qualify for quality employer-sponsored health coverage at ages 65 and 66. Millions simply will not — and will either be forced to deplete their savings to cover health insurance costs in their later years or, more likely, opt to take their chances and go uninsured for two years.

Byrnes: Our federal deficit is completely out of control. There's no reason why we shouldn't be tying Medicare eligibility to longevity in this country. We’ve already done the same for full Social Security benefits. The age-65 rule is relatively arbitrary in the first place. We should never accept certain thresholds as set in stone merely because they were implemented decades ago.

Bloink: The increased costs that older Americans will face will create a type of financial instability for millions that the country as a whole will feel dramatically. The cost of providing health care to uninsured or underinsured older Americans will only serve to increase the costs of health care for all Americans, which is exactly the opposite of what we should aim to achieve.

We also have to remember that taking Medicare away from taxpayers aged 65 and 66 may result in a system where these individuals forgo needed preventative care — resulting in worsening conditions and further increased health care costs all around.

  • Learn more with Tax Facts, the go-to resource that answers critical tax questions with the latest tax developments. Online subscribers get access to exclusive e-newsletters.
  • Discover more resources on finance and taxes on the NU Resource Center.
  • Follow Tax Facts on LinkedIn and join the conversation on financial planning and targeted tax topics.
  • Get 10% off any Tax Facts product just for being a ThinkAdvisor reader! Complete the free trial form or call 859-692-2205 to learn more or get started today.

NOT FOR REPRINT

© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.