The Impacts of an Increase in the Social Security Retirement Age and Medicare Eligibility Age on Social Security Disability Insurance, Medicare, and Employment
August 1999
American Association of Retired Persons
AARP's Public Policy Institute published a Lewin Group report on the potential impacts of jointly raising the Normal Age of Retirement (NAR) and Medicare Eligibilty Age (MEA) from age 65 to 67. Under this proposed policy, a significant portion of peopled aged 65 to 66 would lose their Social Security benefits and Medicare coverage. Some portion of these individuals, however, could potentially retain both their Social Security benefits and Medicare eligiblity by meeting the qualifications for the Social Security Disability Insurance (DI) program. Using data from the Survey of Income and Program Participation and Medicare Current Beneficiary Survey, we estimate that 11.7 percent of the population aged 65 to 66 would have retained their benefits under DI if the NAR and MEA were increased in 1993 to age 67. We also estimated that 11.4 percent of the population aged 65 to 66 would have retained their Medicare coverage under this policy change.