While raising Medicare's age of eligibility from 65 to 67 would reduce Medicare spending for the federal government, the burden of cost would shift to seniors and employers, according to a new Kaiser Family Foundation projection of the potential change suggested by several deficit-reduction plans. 

In the absence of the health reform law, raising Medicare's age of eligibility would result in an increase in the uninsured as many older Americans would have difficulty finding affordable coverage. With health reform, virtually all 65 and 66-year-olds would be expected to obtain alternative sources of coverage. According to the new analysis, 42 percent are projected to obtain coverage through employer-sponsored plans, 38 percent through plans offered through health reform's insurance exchanges, and 20 percent through the expansion of Medicaid for low-income adults.

What does this mean for employers? The study finds that costs would increase by an estimated $4.5 billion in 2014 as employer plans become the primary payer for 65 and 66-year olds who would no longer be eligible for Medicare.

When you can access benefits if you become chronically ill, then yes, it can.

A chronic illness can be just as financially and emotionally devastating to your family as an untimely death. Studies have shown about 70 percent of the U.S. population will need some kind of chronic illness care by the time they are 65 or older.

Recently, several insurance carriers have introduced universal life insurance policies that will pay out long-term care benefits during your lifetime if you become chronically ill.

One carrier, the Hartford, offers a universal life policy with a "Life Access" rider that will pay monthly up to 2 percent of the lifetime death benefit based on becoming certified as "chronically ill" by a physician. This means being unable to perform at least two activities of daily living (bathing, continence, dressing, toileting, eating, transferring) or suffering from a cognitive impairment that requires substantial supervision. For example, a $300,000 policy with the Life Access rider could provide $6,000 a month for potential long-term care related expenses. Unlike a traditional long-term care policy, during your lifetime any benefits not spent will be paid out to your beneficiaries as a tax-free death benefit.

There are no restrictions or other qualifying expenses to you use your Hartford Life Access benefits. You can pay for medical and non-medical expenses, such as family (informal) care, home health care, skilled nursing care, adult day care, home remodeling, transportation, etc.

Although the rider is not intended to fulfill all of your potential long-term care needs and is supplementary to the primary death benefit protection, it can be an excellent way to maximize your resources and enhance your overall financial plan.

Contact Mike Edwards, LUTCF at (720) 858-6289 for more information. 

Securities offered through Woodbury Financial Services, Inc., member FINRA, SIPC. COPIC Financial and Woodbury Financial Services, Inc. are not affiliated entities.