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    Letter to the American Hospital Association Regarding Raising the Medicare Eligibility Age

    October 18, 2011

    Richard Umbdenstock
    President and Chief Executive Officer
    American Hospital Association
    325 Seventh Street, N.W.
    Washington, DC  20004

    Dear Mr. Umbdenstock:

    On behalf of the millions of members and supporters of the National Committee to Preserve Social Security and Medicare, I am writing to share with you our concern about reports that the American Hospital Association is supporting raising the Medicare eligibility age from 65 to 67 as a way of saving money without further cutting reimbursements to Medicare providers.  While we share your concern about further provider cuts, which we acknowledge could have a negative impact on Medicare beneficiaries, we oppose increasing the eligibility age as well as proposals to increase out-of-pocket costs.

    Raising the Medicare eligibility age would save money for the federal government, but it would increase out-of-pocket costs for 65 and 66 year-olds, and for employers providing retiree health benefits.  In addition, it would increase costs for younger people buying private insurance and for seniors covered by Medicare since the risk pools would include older beneficiaries.  It would do nothing to address our nation's health care cost growth crisis.  The Kaiser Family Foundation estimates that 3.3 million 65 and 66 year-olds would face an average of $2,200 more in additional costs each year and that increased state and private-sector costs would be twice as large as the net federal savings. 

    Even with Medicare, health care is very expensive for older Americans.  Seniors already pay 27 percent of their average Social Security benefit for Medicare Parts B and D cost-sharing.  This is in addition to out-of-pocket health care costs not covered by Medicare.  With half of Medicare beneficiaries having incomes below $22,000 per year, they cannot afford to pay more for health care.  Further increasing cost sharing could force many Medicare beneficiaries to put off needed health care until their condition deteriorates to the point where they must seek more costly care in the future. 

    We look forward to working with you on ways to strengthen the Medicare program for beneficiaries and the providers who serve them. 

    Sincerely,

    Max Richtman
    President & CEO