The idea of changing the Medicare age from 65 to 60 has been tossed around over the past several years. It’s typically talked about most during presidential campaigns, and while some people support it, others don’t. Reducing the Medicare age can be beneficial in certain ways, but many people think there are downsides to it as well. Although it may seem easy to simply change the number to 60, it’s not that simple. There are many factors to consider, including employer coverage, Affordable Care Act (ACA) plans, and the cost for beneficiaries.

As you get closer to retirement and Medicare age, you’ll want to know the breakdown of Medicare costs to help you determine what is most cost-effective for you. It’s also important to stay current with potential Medicare changes, including reducing the age to 60. Here are some pros and cons to think about.

Offers Coverage to Early Retirees

Many retire between the ages of 60 and 64 and are left to decide what insurance they should get. They may be offered COBRA or need to choose an ACA plan. However, both options can be expensive compared to what they paid while working or what Medicare would be. The standard base premium for Part B is $170.10 in 2022.

Offering Medicare to those 60 and up can be another alternative for early retirees and help them save money.

More Cost-Effective

For early retirees who do not qualify for Medicaid, Medicare can be a more cost-effective and alternative option.

Some people can qualify for a subsidy with ACA plans due to a lower income. That means their ACA premium will be lower than what the average enrollee pays. However, many people don’t qualify for an ACA subsidy. Once you enter retirement, your income will likely be lower than when you worked; therefore, paying for a high premium ACA plan can be challenging. Some ACA premiums can be 2x the amount of Medicare Part B. For those who retire early, Medicare may be a more cost-effective option.

Nationwide Coverage

If you are new to the Medicare maze, you may be surprised to know that Medicare provides nationwide coverage. You can see any doctor or facility in the U.S. if they accept Original Medicare. That means your coverage will be the same regardless of where you are.

This is quite different from ACA and employer plans as they typically have networks of providers. Most plans are either HMO or PPO plans, and if you have a PPO plan, your cost-sharing can be higher whenever you receive care outside your network. Having a network plan can make traveling problematic because you may or may not have coverage.

Benefits Employers

Dropping the Medicare age from 65 to 60 can also benefit employers. Some employer plans can be quite expensive for employees. If that’s the case in your situation, being eligible for Medicare at 60 can be an alternative option to help reduce costs for the employee and the employer. Employers would spend less money on insurance policies for employees. Depending on their insurance, it could be a win-win for the employers and employees.

When there are pros to a particular change, there are cons that follow. There are some cons to reducing the Medicare age to 60.

Affects Hospitals and Physicians

Individual ACA plans and employer plans pay hospitals and providers different rates compared to what Medicare pays. Generally, private plans pay healthcare facilities more for services than Medicare does. Medicare’s program is set up as a fee-for-service, and if the hospital or provider accepts Medicare’s rate, they cannot charge more than that.

If Medicare is reduced to 60, more people may enroll in Medicare at that age, and therefore, the hospitals and physicians would get paid by Medicare at the Medicare rate. Their revenue could potentially take a hit.

Low-Income Beneficiaries

Although reducing the Medicare age to 60 could be beneficial for those who don’t qualify for an ACA subsidy, it might not be helpful for those who qualify for that assistance. When someone has an ACA subsidy, their premium is more cost-effective with their income. Therefore, when they get on Medicare, the Part B premium can be financially challenging for them.

At this time, when you qualify for Medicare, you cannot have your ACA plan simultaneously. You must disenroll from your ACA plan unless you pay the Part A premium. However, most people qualify for premium-free Part A.

Final Thoughts

Medicare at 60 can have benefits, but it is a complex change that will require much planning. If you are not yet in your 60s, it would be beneficial to research this possibility as you prepare for your Medicare years.

Author: Alexandria Roland

Alexandria Roland is a Medicare expert, licensed insurance agent, and digital marketing coordinator at Boomer Benefits. As a content creator, she shares her knowledge of Medicare through many outlets, including writing. Alex helps to manage a growing online community of over 30,000 seniors in the Boomer Benefits Medicare Q&A Facebook Group.