Increasing the Age of Eligibility for Social Security and Medicare: Projected Impacts on Medicare and Social Security Disability

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Increasing the Age of Eligibility for Social Security and Medicare: Projected Impacts on Medicare and Social Security Disability

The aging baby boom, rising health care costs, and increasing life expectancy have led to concerns about increases in the cost of Medicare and the long term solvency of Social Security. The age of eligibility for full Social Security retirement benefits (often called the normal age of retirement or NAR) was raised from 65 to 67 as part of a 1983 package to achieve long term solvency for Social Security. The study projects the impact of an increase in the MEA on Social Security Disability Insurance (SSDI) participation, Medicare eligibility, and Medicare expenditures using two scenarios:
1. Raise the MEA to 67 by 2022 following the current law increase in the NAR.
2. Raise both the MEA and NAR to 70 by 2040 following the current law increase to 2022 and then continuing the pattern with a two-month-per-year increase to 2040.

published September 2000
AARP Public Policy Institute

AARP
Washington, DC 20049

phone: 1-800-424-3410