Jeffrey Miron proposes an annual deductible of $6,400 for Medicare recipients. As of January 2012, the average Social Security income is $1,230 a month. Yes, there will be annual cost-of-living increases, but currently the maximum monthly benefit is $2,513. Even if that doubles in the next 20 years (and it won't — in 20 years my monthly payment increased by 62%), $6,400 is unrealistic.
Miron says Medicare makes minimal use of deductibles or co-pays. It does have a small annual deductible of $120, but it currently pays only 80% of approved charges. Isn't that a co-pay? To cover the remaining 20% costs me nearly $400 a month.
Changes do need to be made to ensure the survival of Medicare, and increasing the deductible, perhaps based on income, may be the way to go. But Miron's $6,400 is exorbitant.