Millennials and Gen Xers are willing to pay more taxes to ensure Medicare’s stability as the federal agency runs the risk of insolvency in 2036, finds a recent report by eHealth, an online private health insurance marketplace.
In a survey of over 1,000 Millennials and Gen Xers between the ages of 28 to 59, the research found that 84% are prepared to pay higher payroll taxes to safeguard Medicare’s future. This comes as 65% believe Medicare won’t be available in their retirement, and as 94% believe they are entitled to health care coverage in their later years.
The findings show some resentment towards other age groups—78% of Millennials and Gen Xers say Baby Boomers and earlier generations were “financially irresponsible” and are therefore footing the bill to them.
Additionally, Millennial and Gen Xers are eager to understand how the presidential candidates will tackle Medicare’s insolvency in the coming years. Seventy-eight percent say it is among their top-three voting issues, while 56% do not trust elected officials to “do what’s necessary to preserve Medicare.”
“Concern about Medicare’s future is no longer unique to current beneficiaries and older Americans. Our report shows that younger Americans are worried about their access to quality, affordable healthcare as they age,” said eHealth CEO Fran Soistman. “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.”
Still, many are unsure about what exactly the program provides or who it is intended for. Just 28% of Millennials and 41% of Gen Xers know that Medicare is a health care program designed for those ages 65 or over. Others believe the program is a health care feature for children, and 29% confuse the system for Medicaid, a health care program for low-income Americans.
Despite their concerns or oblivion with the program, Millennials and Gen Xers largely approve of the U.S. healthcare system—75% describe it as either “good” or “excellent.” Only 7% consider the system as “terrible.”
The new report comes as more Americans express concerns about Medicare’s solvency. Earlier this month, the Centers for Medicare & Medicaid Services pushed back Medicare insolvency to 2036 in its annual Medicare Trustees report.
The changes came shortly after President Biden released his proposed budget in strengthening Social Security and Medicare. According to the proposal, one of Biden’s major changes includes increasing the Medicare tax rate for taxpayers with incomes over $400,000, from 3.8% to 5%.
Presidential candidate and former president Donald Trump has not disclosed any plans on how he would solve Medicare’s insolvency.
SEE ALSO:
- Broadridge 360: Medicare & HSAs — the Perfect Pair in Retirement Planning
- Securing Medicare’s Financial Future
- Health Care Costs in Retirement for Medicare Beneficiaries Rises Again