More Americans are worried about the possibility of receiving Medicare benefits in retirement.
According to new research out today by the Nationwide Retirement Institute, 63% of respondents reported fears that the program will dissolve by the time they retire. When asked about their biggest retirement planning stressor, 20% answered that the likelihood of Medicare running out of money is their top concern.
“Concerns about the future of Medicare are adding another layer of uncertainty for Americans as they consider how they’ll manage health care costs in retirement,” said Kristi Martin Rodriguez, senior vice president of the Nationwide Retirement Institute. “With high living costs already squeezing household budgets, many are worried about having enough saved to cover their long-term health care.
As a result, more Americans are turning to politicians and policymakers to ease their health care concerns and are casting their vote towards the presidential candidate who could placate their worries. Forty-two percent of respondents named Medicare’s stability as their top health care priority for the next administration, just behind lowering out-of-pocket health care costs (43%) and lowering prescription drug prices (43%). In its research, Nationwide notes that both political parties have stated its prioritization of Medicare reforms, with 47% of Democrats and 43% of Republicans noting a focus on the program’s stability.
Medicare is one of the leading topics that could decide the presidential election in November, as more Americans question the program’s future insolvency and benefit cuts. Like Social Security, Medicare’s insolvency is being pushed back to 2036, yet beneficiaries could continue to face shortfalls in the years ahead.
One notable change is a reduction in supplemental benefits for those enrolled in Medicare Advantage come 2025, at 0.16% of beneficiaries’ baseline payment rates. The cut, made by the Centers for Medicare and Medicaid Services (CMS), the federal agency that administers the Medicare program in the U.S., is the second in the past two years.
Policymakers—and Americans—have both proposed raising tax rates on Medicare to curb the program’s forthcoming insolvency. Current Vice President and Democratic Nominee Kamala Harris has supported imposing taxes on wealthy Americans to strengthen Medicare. Younger generations have also said they’re open to paying more taxes to ensure Medicare’s stability in the future. A May 2024 report by eHealth, an online private health insurance marketplace, found that in a survey of 1,000 Millennials and Gen Xers, 84% said they were prepared to pay higher payroll taxes to safeguard Medicare’s future.
Seventy-eight percent of respondents also named Medicare as among their top-three issues that will determine who they vote for come November.
“Our report shows that younger Americans are worried about their access to quality, affordable healthcare as they age,” said eHealth CEO Fran Soistman at the time. “In fact, most Millennials and Gen Xers say they are willing to pay more now if it means preserving this critical benefit for the future, and Medicare is one of their top-three concerns in the upcoming election.”
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.