When you pay FICA or self-employment taxes, you earn retirement credits that lead to eligibility for Medicare and Social Security. This year, you receive one credit for every $1470 that you earn. You may receive a maximum of four credits a year.
After you have 40 credits, you qualify for these programs. Nearly all who have worked are eligible.
The program was established in 1966, and the age of eligibility is 65, although this could change.
Biden Proposal
President Joe Biden has proposed a reduction in the eligibility age to 60. Since the baby boomers are reaching their 60s, a large segment of the population would be positively impacted.
According to the Kaiser Family Foundation (KFF), a 60-year-old person that purchases a silver-level medical plan through an insurance exchange pays $4400 a year. If that bill were to go away, someone trying to make ends meet could receive quite a boost.
In addition, employers would save money. Workers that are 50 years of age and older are the most significant cost drivers for employer-provided health care insurance. If employers no longer had to cover employees in a high-risk age group, they would save money.
Of course, there are opponents to this measure led by the health care providers themselves. Medicare pays them less than private insurance companies, so they are concerned about lower revenue.
There is another argument against the expansion of coverage. Many people that are getting older could retire, but they continue to work because they need health insurance coverage. Critics say lowering the eligibility age will shrink the workforce and hurt the economy.
Expansion of Coverage
Senator Bernie Sanders is in favor of reducing the eligibility age 50. In addition, he proposes that Medicare begin covering vision and dental care. With these ideas expanding the spectrum of proposed changes, some observers see room for compromise.
Public Opinion
When a “big idea” is introduced into the public consciousness, the public will weigh in, and this influences the lawmakers. KFF’s polling shows a strong 69 percent majority of Republican voters stated that they are in favor of a reduction to as low as 50 years of age, and they are joined by 85 percent of Democrats.
This is a matter that is very relevant to the elder population that we counsel, so we will continue to monitor the situation going forward.
Access Our Estate Planning Worksheet!
You found your way to this site because you are interested in learning more about estate planning and elder law, and you are making the ideal connection. We update this blog regularly, so we urge you to come back and visit us to stay up to date.
In addition to the blog, there are other written materials that you can access, and one of them is our estate planning worksheet. This resource has been carefully prepared to give you a more thorough understanding of the process, and it is being offered free of charge.
You can get your copy right now if you head over to our worksheet access page and follow the simple instructions.
Need Help Now?
If you are ready to work with an Oklahoma City estate planning lawyer to put a plan in place, we are here to help.
You can send us a message to request a consultation appointment, and we can be reached by phone at 405-843-6100.
- Understanding IRA Inheritance Planning: Key Considerations - September 14, 2023
- Irrevocable Trust Decanting Provides Flexibility - September 12, 2023
- Inheritance Planning Solution for a Spendthrift Heir - September 7, 2023
