The Obama administration has ruled out raising the Medicare eligibility age from 65 to 67 as a means of reducing spending, White House Press Secretary Jay Carney announced during a briefing on Monday.
The measure — which the President floated as part of a larger deal to reduce the deficit in 2011 — is widely supported by Republicans, but would only save the federal government a net $5.7 billion, while shifting an added $11.4 billion in health care spending to states, employers, and individuals.
The proposal could also devastate the majority of seniors. While the richest Americans have fared well during the sluggish economic recovery, most Americans continue to struggle with falling wages and job uncertainty. According to a recent report from the Conference Board, 62 percent of workers between 45 and 60 plan to delay their retirements, a stark jump from 2010 — when 42 percent of workers planned a delay.