Digby reacts with horror at so-called liberal Democrats who are in favor of Obama’s plan to raise the Medicare eligibility age to 67, a disastrous idea that would ultimately lead to higher health costs for people of all ages.
A Kaiser Foundation study concluded that “raising Medicare’s eligibility to 67 in 2014 would generate an estimated $5.7 billion in net savings to the federal government, but also result in an estimated net increase of $3.7 billion in out-of-pocket costs for 65-and 66-year-olds, and $4.5 billion in employer retiree health-care costs.”
So it would save $5.7 billion from the Federal budget in the first year, but it would cost everyone else $8.2 billion. That means it would increase health care costs by $2.5 billion. (We do the math so you don’t have to.) Who would benefit from a lower Federal deficit? High earners who want to cut spending so they’re not pressured to pay more taxes. Who would get hurt? Older Americans, employers, and anybody on an employee benefit plan. That’s government of the rich, for the rich, and by the rich.