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Bipartisan proposal targets Medicare

Eligibility age would rise to 67 from 65 by 2025

WASHINGTON – A bipartisan team of senators aims to raise the Medicare retirement age to 67 and require the wealthy to pay more for their care as part of the White House-congressional effort to dramatically reduce federal deficits.

The plan, authored by Sens. Joseph Lieberman, I-Conn., and Tom Coburn, R-Okla., would save an estimated $600 billion in the cost of Medicare, the government’s health care program for the elderly and some disabled. While the plan is expected to meet strong resistance, some of its elements could be incorporated into a bipartisan deal.

The senators’ proposal would increase the Medicare eligibility age, now 65. It would go up two months each year, beginning with people born in 1949, until it reaches 67 in 2025. The age would then remain 67. If the 2010 federal health care law is repealed or overturned, as Republicans want and courts are considering, the age would remain 65.

The senators’ effort comes as President Barack Obama plans another round of debt reduction talks today with Senate Democrats. There was no word on when he might talk to Republicans. Obama met separately Monday with Senate Majority Leader Harry Reid, D-Nev., and Senate Republican leader Mitch McConnell of Kentucky.

White House press secretary Jay Carney, asked Tuesday about the future of bipartisan talks, said, “I don’t have a structure to provide to you.”

Bipartisan talks between Vice President Joe Biden and congressional lawmakers from both parties ended last week after Republicans pulled out, saying Democrats wouldn’t budge on their insistence that tax increases be part of any deal. The two sides remained at odds Tuesday.

Any deal would be part of legislation to raise the nation’s $14.3 trillion debt ceiling. Without an increase, administration officials estimate the government will exhaust its borrowing authority by Aug. 2, which could lead to a default on U.S. debts, chaos in financial markets and a new recession.

Medicare’s trust fund is expected to be insolvent in 2024, and its projected annual costs are a major driver of federal spending. The program is expected to serve 48.9 million people this year, and grow to serve about 64 million by 2021.

Reaction to the Lieberman-Coburn plan was lukewarm. McConnell praised the senators for coming up with a plan, but didn’t endorse it. Reid called it a “bad idea,” while House Minority Leader Nancy Pelosi, D-Calif., said it was “unacceptable, especially for struggling middle-class Americans.”

Republicans want to dramatically revamp Medicare.

House Republicans voted earlier this year for a plan to privatize the system. Under it, people who retire after 2021 would choose from a list of private “guaranteed coverage options” and get federal help with the cost.

Democrats concede that Medicare savings are needed, and the 2010 federal health care law included changes expected to save about $500 billion over 10 years. The Democrats’ plan includes a mechanism to pare Medicare’s spending if its growth rate rises above a set amount, penalizing hospitals for “excessive readmission rates” and creating new, potentially more efficient ways for people to get medical care.


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