Q. What happens when the smartest guy in Oklahoma moves to Texas?I was reminded of that old joke when I was reading about some of the proposed ways to cut the cost of Medicare. One of the policy changes discussed as part of the deal to raise the federal debt ceiling was increasing the eligibility age for Medicare from 65 to 67. Sarah Kliff, in a Washington Post blog, warns of a possible negative consequence:
A. The average IQ of both states drops.
"A recent Kaiser Family Foundation report found that premiums in the [states' health insurance] exchanges would rise about 3 percent if all eligible 65- and 66-year-olds enrolled. Medicare would see a similar premium increase, with its youngest, healthier subscribers leaving the program."That is, if Medicare drops them and the insurance exchanges are forced to enroll them, this addition of older (and therefore, on average, sicker) Americans will cause exchange premiums to go up. And if Medicare loses these very same 65- and 66-year-olds (who are, on average, healthier than the even older Medicare enrollees who would be left in that program), then Medicare's premiums will go up, too. Sounds like a lose-lose situation, right?
After the jump, how to turn it into win-win.