A slightly radical idea to expand Medicare

Hillary Clinton wants Americans to have access to Medicare starting at age 50. It’s an idea well worth considering, not least because so many Americans aged 50 to 64 who don’t have job-based health insurance struggle to afford the relatively high premiums they’re charged for private plans. And Medicare is a popular, battle-tested and relatively inexpensive insurance system, costing less per person than private insurance.

Such an expansion would have to be carefully designed, however, to make sure Medicare premiums for this age group accurately and transparently reflect the cost of coverage. Underpricing would undercut private insurers competing for the same customers, and also saddle taxpayers with the extra cost.

The most straightforward approach would be to offer people younger than 65 a price equal to the full cost of their coverage. That would probably be at least $7,600 for people in their early 60s — an estimate the Congressional Budget Office came up with in 2008. Today, the figure would be even higher, and it’s not clear how many people would want to pay it.

In contrast, the average second-most-generous Obamacare plan this year costs $10,911 for a 60-year-old. But the government subsidizes those premiums through a tax credit to people whose incomes are less than 400 percent of the poverty line. It would make sense to offer the same subsidies to people who would buy into Medicare.

If the price were well calculated, a Medicare option could offer needed competition in places where few companies sell insurance on state exchanges. That’s increasingly important: The number of counties where just one plan is available is projected to triple to more than 650 next year. And covering preventive care for people during the decade before they reach 65 could potentially lower Medicare spending on chronic diseases.

Selling Medicare policies on the exchanges would be an ambitious, yet not radical, way to expand insurance coverage. In other words, just the kind of incremental reform the health-care system needs.

The above editorial appears on Bloomberg View, www.bloomberg.com/view.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Opinion

toon
Editorial cartoons for Thursday, April 3

A sketchy look at the news of the day.… Continue reading

King County Executive Dow Constantine and Senator Maria Cantwell walk through the Lynnwood Center Station to board the 12:30 pm train during the Lynnwood 1 Line extension opening celebrations on Friday, Aug. 30, 2024 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Editorial: Transit board, new CEO have much to deliver

Sound Transit’s board hired one of its own as chief. The stakes for success are high for all involved.

Comment: Voters trumped cash in Wisconsin; keep it that way

Elon Musk’s $20 million to back a candidate failed. Strengthen laws to prevent campaigning by bribery.

Comment: Drug companies need to speak up about RFK Jr.’s FDA

With recent moves, companies are waking up to the fact that things are bad and could get worse.

Journalism support bill: Make tech companies pay share

My wife worked for The Herald for over 20 years. At that… Continue reading

Donate to food banks and lobby Congress to protect SNAP

With increasing numbers of hungry people, food banks are struggling to meet… Continue reading

Elon Musk’s DOGE work, contracts in conflict

In February Elon Musk’s company, Space-X, was awarded a contract with a… Continue reading

toon
Editorial cartoons for Wednesday, April 2

A sketchy look at the news of the day.… Continue reading

Everett mayor Cassie Franklin delivers her State of the City address on Friday, March 28 in Everett, Washington. (Will Geschke / The Herald)
Editorial: The state of Everett amid the state of play

In her state of the city speech, Mayor Cassie Franklin makes the case for optimism amid dark clouds.

Welch: Latest state tax proposals threaten jobs and economy

Using fear of budget cuts, state lawmakers are taking the easy route with damaging tax increases.

Protect funding for vital service of public libraries

I am a patron of the Sno-Isle Library system. I have been… Continue reading

SAVE Act would hamper voting for many Americans

Our democracy works best when every eligible voter, regardless of background, can… Continue reading

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.