Uninsured Adults Increase Medicare Costs

A Harvard Medical School study suggested that expanding U.S. Medicare coverage to adults under the age of 65 might be far more cost effective than thought.

The study, led by Associate Professor John Ayanian and Dr. J. Michael McWilliams, showed that people who were uninsured before receiving Medicare benefits at age 65 required more intensive and costlier care than those who had been privately insured prior to receiving Medicare.

The implication is that expanding coverage to uninsured near-elderly adults may not cost as much as previously thought, said McWilliams. Particularly for those with heart disease, hypertension or diabetes, earlier access to effective treatments can prevent costly complications and reduce healthcare needs after age 65.

Created in 1965, Medicare covers nearly 43 million elderly and disabled Americans.

The research is reported in the New England Journal of Medicine.