|Title||The Impact of Income-Related Medicare Part B Premiums on Labor Supply|
|Publication Type||Journal Article|
|Year of Publication||2019|
|Authors||Ayyagari, P, Sloan, FA|
|Journal||ILR Review: The Journal of Work and Policy|
|Keywords||Labor, Labor Dynamics, Medicare, Medicare Part B|
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.