The Impact of Income-Related Medicare Part B Premiums on Labor Supply

TitleThe Impact of Income-Related Medicare Part B Premiums on Labor Supply
Publication TypeJournal Article
Year of Publication2019
AuthorsAyyagari, P, Sloan, FA
JournalILR Review: The Journal of Work and Policy
Pagination0019793919891973
KeywordsLabor, Labor Dynamics, Medicare, Medicare Part B
Abstract

The 2003 Medicare Modernization Act introduced income-related premiums on Medicare coverage for professional services (Part B) for the first time. Beginning in 2007, higher-income households were required to pay higher premiums for Part B coverage, which raises the price of Medicare relative to employer-sponsored health insurance for these households. The authors exploit this exogenous change in Medicare policy to examine the impact of Part B premiums on the labor supply decisions of older adults. They find that higher Medicare premiums delay retirement. Findings have important implications for Medicare policy and labor markets.

URLhttps://doi.org/10.1177/0019793919891973
DOI10.1177/0019793919891973
Citation Keydoi:10.1177/0019793919891973