Login Join us
Policy & Advocacy

Democrats Introduce Bill Allowing People Aged 50 and Older to Buy into Medicare Advantage

Democrat Senators introduced a bill that would permit individuals aged 50 and older to buy Medicare Advantage (Part C) coverage beginning January 1, at least 1 year after enactment. 

June 04, 2019

Democrat Senators Debbie Stabenow (MI) and Tammy Baldwin (WI) and Representatives Brian Higgins (NY) and Joe Courtney (CT) introduced a bill that would permit individuals aged 50 and older to buy Medicare Advantage (Part C) coverage beginning January 1, at least 1 year after enactment.

The bill would charge individuals the full premium for coverage but subsidize coverage for those individuals eligible for ACA exchange tax credits and cost-sharing reductions. It would also serve as a quasi-exchange stabilization bill by allowing older individuals to purchase Medicare Advantage coverage instead of exchange coverage. Historically, the highest percentage of enrollees in exchange plans have been early retirees (people aged 55 – 64). It is unclear what options would be available for people living in counties where no private Medicare plans are available and whether Congress may modify the bill to restrict purchasing of Part C plans to only people without an offer of other coverage.

Impact on Employers and Employees

Older and younger employees using the exchanges could have more plan choices, especially in areas where competition is limited, if Medicare Advantage plans are available in their area and younger employees could see a reduction in premiums if older employees enroll in Part C plans.

Depending upon the cost of Part C coverage, employers could face some workplace disruption if employees decide to retire early and enroll in Part C. Additionally it could reduce the number of employers offering early retiree coverage and others could revise their offerings. However, the disruption would be less severe than an expansion of traditional FFS Medicare.

Outlook

The bill is part of a larger debate by Democrats leading up to the 2020 election and will likely be one of many proposals. It’s unclear whether it will gain traction. Democrats are not unified behind a coverage expansion proposal with the party’s left demanding expanding traditional FFS Medicare while the party’s middle recommending improving upon the ACA and more modest expansions of Medicare. Moreover, the hospital industry has come out against expanding Medicare.

More Topics

Policy & Advocacy icon_right_chevron_dark Medicare For All icon_right_chevron_dark
More in Policy & Advocacy