Did Ezra miss a trick? (on Rachel's show)

[Motown_Johnny]

He just explained the math behind raising the eligibility age for Medicare from 65 to 67.

A large part of the problem is the money that will be spent on private insurance.

Isn't this money tax deductible? Won't forcing people aged 65 and 66 to spend that money lower revenues brought into the Federal Government and if so shouldn't that be part of the equation?

[dsc]

1. No it isn't

unless it is over 7% of their total income. The employee provided insurance isn't taxed but privately bought insurance isn't tax exempt.

[Motown_Johnny]

2. Isn't most insurance purchased though an employer?

I know mine is and it lowers my taxable income. Even some of my AFLAC comes off my taxable income (but not all).


So if those 65 and 66 year old persons are still receiving insurance though an employer then it is lowering revenue.

[dsc]

3. likely trivially

since if they retire then the would get replaced by someone who has insurance and if they don't then there is no change.

[Motown_Johnny]

5. That assumes people will retire at 65, without Medicare benefits.

There are some people who work past 65 now. The number of those people will increase if they are dependent on employer based insurance because they can't get Medicare at 65.

[ellenfl]

4. people who buy insurance for themselves usually do NOT get to use

pre-tax dollars. i had to buy my own individual policy for several years and did not get any tax break. i haven't had employer-provided health insurance for almost 20 years. when my cobra reached $700/mo., i tried to get another cheaper individual policy but was turned down for pre-existing conditions. the employee portion of an employer-provided insurance premium is paid using pre-tax dollars. my bf's employer now covers me and i contribute to the premium but i still do not get the tax break. my bf does.

i would guess that more women than men are without health insurance because we cannot afford it.

[Motown_Johnny]

6. That is only about 9% of us.

http://en.wikipedia.org/wiki/Health_insurance_in_the_United_States

^snip^

According to the US Census Bureau, about 9% of Americans are covered under health insurance purchased directly.





And because the Health Care Reform is going to impose a penalty on most employers for not providing coverage there is a very good chance that percentage will drop.

[ellenfl]

7. it's only 9% because it's unaffordable for many. eom