5. In the article below, it is proposed to raise the Medicare age to 67. Using economic theory discuss the implications…

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5. In the article below, it is proposed to raise the Medicare age to 67. Using economic theory discuss the implications of this legislation on the market for medical care. Bill Would Raise Medicare Age to 67 Sens. Joseph Lieberman (I-Conn.) and Tom Coburn, MD (R-Okla.) released a Medicare proposal Tuesday that would stave off reimbursement cuts for physicians in the program for three years, but would raise Medicare eligibility to 67 and increase out-of-pocket expenditures. Lieberman and Coburn said their bill will save Medicare $600 billion over 10 years, mainly shifting costs to beneficiaries and delaying the age at which the program pays out benefits. For physicians, the bill offers a carrot in the form of a three-year “fix” for the sustainable growth rate (SGR) formula that determines physician reimbursement. That formula, which ties physician payment rates to changes in the gross domestic product, currently calls for a 30% cut in rates beginning Jan. 1, 2012. Under the Lieberman/Coburn proposal, the fix would allow time for a new reimbursement system to be developed. The CBO estimates that extending the SGR for three years would cost $37.7 billion, the senators noted.

 

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