Medicare is a government-funded health insurance program for retirees who are over the age of 65. Suppose that workers who continue to work past age 65 - and who are covered by an employer-provided health insurance plan - must currently remain on their employer's health insurance and cannot go off that plan and on to the Medicare plan. The payment their employers must continue to pay for their insurance each month is on a per-worker basis (X dollars per worker). In 2018, two economists proposed that workers who continue to work past the age of 65 be put under Medicare coverage, thus ending their coverage by their employer's plan - which would mean that their employers no longer have to pay health insurance premiums for these older workers. What would be the possible labor market outcomes of this proposal for workers over the age of 65 who continue to work

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Implementing the proposal for workers over the age of 65 to be put under Medicare coverage instead of their employers plan could have several potentia... View the full answer