The Harvard School of Public Health reports,
Many experts believe that future Medicare spending will have to be reduced in order to lower the federal budget deficit but polls show little support (10% to 36%) for major reductions in Medicare spending for this purpose. In fact, many Americans feel so strongly that they say they would vote against candidates who favor such reductions. Many experts see Medicare as a major contributor to the federal budget deficit today, but only about one-third (31%) of the public agrees.
Pointer from Phil Izzo. Somehow, I don’t think Tyler Cowen would be surprised by these results.
It doesn’t have to be an “either/or” situation. A couple of easy ways to reduce Medicare spending are:
1) “untie” Medicare from Social Security, such that people could decline to enroll in Medicare yet preserve their access to SS (at this time, this is illegal, although a lawsuit to allow de-coupling of these two programs is presently wending its way through the court system.)
2) include a high deductible/HSA type plan within the Medicare structure. Many people who have experienced and like private HDHPs might like to continue them under the Medicare umbrella, but cannot.
3) allow the Medicare eligibility age to creep up, as was done with SS (although it should creep faster, IMHO). It makes no sense that most people are “forced” to enroll in Medicare at 65 (or pay a penalty), when they may delay taking SS for many years after that age.