CBO: Raising Medicare age would save $148 billion

Raising the Medicare eligibility age would save the federal government money while shifting more costs to seniors, the Congressional Budget Office said Tuesday.

CBO also said the effects of raising the Medicare eligibility age would be "less onerous" if President Obama's healthcare reform law remains in place.

Proposals to raise the Medicare age have surfaced in nearly every round of budget-cutting talks in Congress since Republicans took over the House majority, and Obama put the idea on the table during negotiations last fall.

According to a CBO report released Tuesday, gradually raising the Medicare eligibility age to 67 would save the federal government about $148 billion over 10 years. But it would increase costs to seniors, and some seniors would become uninsured or would pay higher prices for private insurance.

CBO assumed that Obama's healthcare law would remain in place if the Medicare age is raised, meaning seniors would be able to buy private coverage through the new insurance exchanges. Without the healthcare law, "many more people" would end up uninsured if the eligibility age is raised, CBO said.

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