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

Journal Article (Journal Article)

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.

Full Text

Duke Authors

Cited Authors

  • Ayyagari, P; Sloan, FA

Published Date

  • March 1, 2021

Published In

Volume / Issue

  • 74 / 2

Start / End Page

  • 419 - 442

Electronic International Standard Serial Number (EISSN)

  • 2162-271X

International Standard Serial Number (ISSN)

  • 0019-7939

Digital Object Identifier (DOI)

  • 10.1177/0019793919891973

Citation Source

  • Scopus